Is this the Big crash or the great Bitcoin fight back?
Hi fellow investors, gamers and lurkers. Just wanted to draw everyone's attention to the 'Wedge Formation' I have been tracking. See image below.
Please note that I am a self taught trader and for this reason you should do your own technical analysis and research before making any financial decisions!
A Break-out (either up or down) usually occurs BEFORE the end of the Wedge, but 10 days is the MAX numbers of days before I think something HUGE will happen. The dropping volume also indicates that an equilibrium point is about to be reached.
An unstoppable force meets an immovable object
I am a big believer in 'equilibrium points' which can be characterized as " the state in which market supply and demand balance each other, and as a result prices become stable [for a time]. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand—while an under-supply or shortage causes prices to go up resulting in less demand. "
What Is a Wedge Formation?
A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling at differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts.
KEY TAKEAWAYS
Wedge patterns are usually characterized by converging trend lines over 10 to 50 trading periods.
The patterns may be considered rising or falling wedges depending on their direction.
These patterns have an unusually good track record for forecasting price reversals.
The above definition was taken from investopedia.com/terms/w/wedge.asp
So is BTC going up or down?
Downward trendlines converging in a wedge formation is usually indicative of an up-movement, however this is not always the case. I prefer to simply let people know when something is going to occur and let them make up their own minds, or at least be aware that volatility can be expected. This is also the reason I am not going to be giving my BUY or SELL points, as I worry that I may make a mistake and then people could lose money or make bad decisions based on something I have predicted.
While most chart analysts are quick to say "this is not financial advice", when an analyst sounds like they know what they're doing, newer traders may be tempted to follow them! I know I did that when I first started trading Cryptocurrencies in March 2021.
Just be careful over the next week or two, and keep a close eye on the charts. Both $HIVE and $BITCOIN could be in for a wild ride this month.
THE END
