Bitcoin in a Wedgie, Altcoins could Boom

sixshooter (45)in #bitcoin • 6 years ago (edited)

Bitcoin in a Wedgie, Altcoins could Boom.jpg

Summary: Hold cash in your trading funds for a breakout to the upside and hold your investment positions.

Trading on margin is a fools game in this market it's screaming short squeeze.

We have been in a Bulkowski's Descending Broadening Wedge formation for the last 8 days or so. According to the rules for a long term bull market, we have touched the bottom of the wedge for the 3rd time at March 30th and that should have been a buy.

However, I did not buy, since the volume was not supportive of a buy in my opinion. I am also considering Bitcoin to be in a short to mid-term bear market with a long term bull market still in place. If you take a look at the ellipse on my chart it highlights what I consider to be a very dangerous area. A cross of the price at the intersection of the line labeled previous downtrend support, the bottom of the descending wedge, and the descending red dotted line of the long term decent would be very bad. If the price were to cross the 4560 area, in any case, it would be likely that prices could decent to the 3627 quickly and then lower.

The RSI wants to go up as well as the MACD. Watch for a breakout over the upper yellow line of the descending wedge. That will be a sign to go on alert for a possible trade. If we should get a breakout above the 7250 range, then the current downtrend should be over and a new trade can be opened. If a trade opens then be watchful of the 60 Period EMA in Red above which is currently around 7557 for strong resistance and a possible pullback. A close above the EMA would be very positive.

When the market breaks to the upside on Bitcoin, I will also add to my alts, top of my list currently are Verge XVG, Lumens XLM, OmiseGo OMG, Dash, Waves, and Golem. All of these are solid projects with good teams and have the ability to quickly rebound by 300% to 500% in price.

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All statements and expressions I offer are my opinions, and not meant as investment advice or solicitation. Information provided is not personal investment advice. Seek guidance from a professional investment advisor before trading or investing. Trading cryptocurrencies can be a potentially profitable opportunity for investors. You should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. I am not a registered investment advisor.