Bitcoin Falling to $35,000!? The Ascending Wedge Calls for Doom.

Nov 27, 2023

Bitcoin has fallen out of the 4HR bull channel and failed to break above the Weekly Resistance 3 times. This is a decent short-term sell signal that if your trade is managed properly, the probability of profit is on your side.

How do we trade this?

Bitcoins macro trend is bullish, so we must exercise caution when considering a short. While the trend is a major data point, we must also consider the rest of the picture in front of us. Bitcoin has failed three times to break Weekly Resistance, a reversal signal. We've fallen out of the 4HR bull channel, another signal to sell. There's a gap to minor support which has been tested twice and the RSI is below the Moving Average with room to fall; all data points in favor of a short.

It is reasonable to have a short-term sell bias on this 4HR timeframe but proceed with caution. The first sign of a bull reversal bar closing on or near its high means it's time to exit the trade.


Trade Idea:

Short Entry: $37,630
Stop Loss: $38,270
Take Profit: $36,350
Risk/Reward Ratio: 1:2


Key Takeaways

1. Fell out of Bull Channel, Now in Ascending Wedge.
2. Currently re-testing bull channel support.
3. Gap down to Minor Support at $36,200.
4. RSI at 48.00 below Moving Average, Bias to Short.
5. Short to Minor Support.


You are solely responsible for your trades, trade at your own risk!

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Nov 29, 2023

Note

November 27th at 15:00 was the bull candle that should have ended your short. The price never quite made it to the Minor Support line of $36,200 but instead, reversed at $36,700. That last bull run should be the final indicator that the price is going to break Weekly Resistance and head toward the top of the bull channel. Price targets between $40,000 and $42,000. Stay tuned for more updates and analysis!