Bitcoin Wedge

Heres a look at bitcoin again, using Bitstamp data with 4 hour candles.

We can see that since the low in October price has been quite volatile with some big peaks and dips however each peak and dip higher than the previous. This price action seems to have formed quite a nice bullish channel, marked with two green trendlines. The obstacle to the next bullish price move is that top red trendline which has provided resistance for a long time now, going back to roughly when the all time high price collapsed in fact.

That upper resistance line is where I expect the top of a wedge to occur which i marked in bold, lower green line will be supporting the bottom of the wedge. I won’t be suprised to find the price confined within that wedge for most of December but then should be resolved by the end of the year! And up up and up (maybe wishfull thinking)

According to my log chart prediction price will resolve down from that wedge, but actually not fall far but will be more like dragging along horizontally. Here it is again, log chart with 1 day candles

After the price reaches the bottom of that channel, maybe early next year, then the big moves up up and up! 🙂

8 thoughts on “Bitcoin Wedge

  1. Silver :
    Bad role falls always to silver. When world economy is slowing down, it is considered as industrial metal, so it falls. When world economy is accelerating, it is considered as precious metal, so it falls.

    About bitcoin :
    Another way to say same things you wrote above.

    See L1 < L2 < L3 and see H1 < H2. So I'm pretty confident that H3 will be higher than H2.

    Also see that wedge you described works out over RSI indicator as well!

    1. I think silver has been falling on both scenarios as you say but I also believe that can’t go on forever, although when will that trend break is very hard to predict.

      I think we’re looking at similar bitcoin channel but to hit your H3 point it will have to get through some tough resistance. That would mean bull mode quicker than I’m anticipating, which would be nice if it happens

  2. I got it !

    Hope will spend a quiet weekend. Monday or tuesday we could see a combination of bullish signals :
    – price above SAR,
    – price above bullish ichimoku cloud,
    – bullish MACD cross over signal,
    – uptrend Stoch RSI
    – and the fact that price is on the channel’s bottom.

    I’m confident if price doesn’t go under USD366 during the couple of days coming.

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