It's been a while since I've posted to Steemit. The truth is, I've been busy trading the many opportunities in the crypto markets which has very profitable.
However, I thought I would take a few minutes away from trading and post an update on where I see Bitcoin heading. There is a LOT of speculation whether Bitcoin has hit the bottom or not. The truth is, no-one knows. But we can make an educated guess based on chart patterns.
For those that follow me on TradingView, I posted that a possible pennant pattern was forming on the 1 hour Bitcoin chart. You will also note the volume has been steadily decreasing.
As price continues to squeeze into a tight range, the amount of selling and buying pressure reaches equilibrium.
So who will win? The bulls or bears?
Let's take a closer look at a chart I posted earlier today to TradingView below. On the 15 min chart, I noticed a rising wedge pattern forming right underneath the consolidation zone. As you are probably aware already, this is a BEARISH pattern. Until there is a strong reason to convince me otherwise, I always look to sell a rising wedge pattern.
Now, interestingly there was a short pop out the top of the rising wedge pattern. I've covered this before, but beware when you see this. It is NOT a bullish sign unless it is a MASSIVE candle. More often than not, it will stop in its tracks.
This is one of my favorite patterns to trade. Selling into novice traders who are buying the pump and placing stop loss orders beneath the origin of the breakout. So now that Bitcoin has started to roll over, I would expect trend continuation.
As mentioned in previous posts, I still firmly believe we are more likely to see $5,000 than $7,000. With the breakout pattern now triggered, the most probable target is $5,800 as shown below.
Remember, the trend is your friend until proven otherwise. In this case, a break of the consolidation zone above $6,500 would pause the bearish momentum.
Follow me on TradingView here: https://www.tradingview.com/u/cheesetoast/
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