We have fallen out of the initial rising wedge identified with not much continuation to the downside - instead, forming the first descending triangle and subsequently breaking up, thereby continuing the formation of a larger rising wedge. Currently, we are in formation of a second descending triangle. Key to note that descending triangle formations are usually bearish, but as with the first triangle that was formed, this is not always the case.
Depending on the levels that price breaks against time, closing candles outside these levels with strong volume will drive further movement. Key to note that on BFX there are currently more net shorts than long currently, and as per most EW analysis, we are due for a wave towards the downside. Conversely, strong moves towards the upside might create a short squeeze situation to take note of and pump prices higher than markets intended.
Depending on the levels that price breaks against time, closing candles outside these levels with strong volume will drive further movement. Key to note that on BFX there are currently more net shorts than long currently, and as per most EW analysis, we are due for a wave towards the downside. Conversely, strong moves towards the upside might create a short squeeze situation to take note of and pump prices higher than markets intended.