Price action has been uncertain for almost a month now, and I observed a broadening wedge pattern forming on the Bitcoin 1D chart.
I published a post on Tradingview (I don't post much there but do follow me if you want :D)
Original Idea: https://www.tradingview.com/chart/BTCUSDT/FbLOhLKd-Euphoria-or-Macro-top-on-Bitcoin/
Here's the chart with the bullish and bearish cases.
Disclaimer: As always, nothing is financial advice. Always DYOR before investing or trading, and manage risk properly.
In case you are wondering what this pattern means: Have a look at Investopedia's definition of a Broadening wedge: https://www.investopedia.com/terms/b/broadeningformation.asp (for educational purposes)
A major point to note: "Broadening formations are generally bearish for most long-term investors and trend traders"- This is why I'd remain cautiously bullish now. I personally feel we are close to euphoria, so I won't be taking any heavily leveraged positions for now.
As mentioned in the Tradingview post, this is my take:
If you already made enough money, it'll never hurt to book profits and keep a small amount in USD or even Bitcoin once your targets/stop-loss are hit.
Below is a chart of Bitcoin dominance:
Surprisingly, I see a bearish Descending Triangle pattern, which can break down.
But I believe it will take a lot of time.
Another thing which I observed: This cycle has slowed down, so the bull market can last longer than previous cycles (good news for everyone!) But, volatility will reduce eventually (bad news for traders). We might see less violent movement in the future.
But as always, Bitcoin Euphoria is fine, but the Altcoin euphoria will be massive! It is going to literally make or break a lot of people. A lot of newbies who entered during June-July can get trapped.
Bonus: Keep eyes on Litecoin! Everything looks terribly shitty, and that's when you should buy right? ;)
Keep eyes on the Majors like ETH and XRP as well.
Want conviction? ;)
Called Solana around $2, when no one was talking about it: @beehivetrader/usdsol-a-sleeping-giant-gem-101-edition-1
Called Dogecoin when everyone called it a shitcoin before :
@beehivetrader/usddoge-coin-almost-a-year-of-consolidation-will-it-break-out
Called LTC at $52)
https://www.tradingview.com/chart/LTCUSD/k3r1NThF-I-ve-been-accumulating-LTC-since-52-and-now-I-see-this/
Called FTT at $2 @beehivetrader/usdftt-ftx-exchange-token-trade-setup
Even though it's a trade setup, I observed massive accumulation, so I kept trailing stoploss, and got stopped out around $55. Might buy it again.
Okay, if you check all my posts, I also called quite a few shitcoins that didn't perform at all and I'll be honest, so in the end, it's risk management that matters the most :)
Not that you'll bet everything on one project and wait for the moon ... (just saying!)
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