Just an idea that looks totally impossible now (Dec 19, 2020), when most people think Bitcoin will reach $100k in no time and will never retest levels below $20,000.
But let's see the chart. We have a broadening wedge, which is a reversal pattern.
Statistics of the ascending broadening wedge after a peak:
The price objective is determined by the lowest point at which the ascending broadening wedge was formed. In this case price objective would be around $11,500. At the same time, the Fibo 0.618 retracement level is in the same spot, which gives some confluence to this idea.
This is not financial advice, nor I think you should short Bitcoin now. This is just an idea based on the theory of the broadening wedge pattern. Let's see.
But let's see the chart. We have a broadening wedge, which is a reversal pattern.
Statistics of the ascending broadening wedge after a peak:
- In 80% of cases, the exit is bearish.
- In 75% of cases, an ascending broadening wedge is a reversal pattern.
- In 60% of cases, an ascending broadening wedge’s price objective is achieved when the support line is broken.
- In 21% of cases, the price makes a pullback in resistance on the ascending broadening wedge’s support line.
The price objective is determined by the lowest point at which the ascending broadening wedge was formed. In this case price objective would be around $11,500. At the same time, the Fibo 0.618 retracement level is in the same spot, which gives some confluence to this idea.
This is not financial advice, nor I think you should short Bitcoin now. This is just an idea based on the theory of the broadening wedge pattern. Let's see.