Today I’m looking at the BTC chart. Bearish sentiment seems to be very high which actually gives me a lot of hope for BTC here. The 3 day chart specifically looks great to me.
We are in the middle of a touch on the 3 day bollinger band and the stochastic rsi is low and turning up. As you can see, the past two times we bounced on the bollinger band we saw significant increases. The band is also starting to squeeze a bit which could indicate that a large move is coming. Of course this move could also be a downward move, but given the fact that the indicators look great, I think it’s more likely to be a positive move. $8k is my short term goal and then I’ll have to reevaluate. At the moment, Crypto Twitter is bearish because of a rising wedge pattern that is forming on a shorter time frame.
Here’s what they’re looking at:
As you can see, this rising wedge is very similar to the one just above it that resulted in a pretty signifiant drop in price. I do believe that BTC will show strength and break upwards out of this pattern (something BTC has a tendency to do). If the pattern does break downwards like a textbook rising wedge, I will consider that to be troublesome and will be staying out of crypto markets until I see something more encouraging. It could definitely offer some great entries on alts if it happens, though.
Overall, I like what I see from Bitcoin. In fact I like what I see a lot more than anything I’ve seen from BTC in this first half of the year. I think this drop is showing signs of being exhausted and we might be due for some bullishness pretty soon. I will definitely update BTC’s TA as we go because I see the next few days as being pretty important for the development of the chart.