Bitcoin Falling to $35,000!? The Ascending Wedge Calls for Doom.

Bitcoin has fallen out of the 4HR bull channel and failed to break above the Weekly Resistance 3 times. This is a decent short-term sell signal that if your trade is managed properly, the probability of profit is on your side.


How do we trade this?

Bitcoin Falling to $35,000!? The Ascending Wedge Calls for Doom.


Bitcoins macro trend is bullish, so we must exercise caution when considering a short. While the trend is a major data point, we must also consider the rest of the picture in front of us. Bitcoin has failed three times to break Weekly Resistance, a reversal signal. We've fallen out of the 4HR bull channel, another signal to sell. There's a gap to minor support which has been tested twice and the RSI is below the Moving Average with room to fall; all data points in favor of a short.

It is reasonable to have a short-term sell bias on this 4HR timeframe but proceed with caution. The first sign of a bull reversal bar closing on or near its high means it's time to exit the trade.


Trade Idea:

Short Entry: $37,630
Stop Loss: $38,270
Take Profit: $36,350
Risk/Reward Ratio: 1:2


Key Takeaways

1. Fell out of Bull Channel, Now in Ascending Wedge.
2. Currently re-testing bull channel support.
3. Gap down to Minor Support at $36,200.
4. RSI at 48.00 below Moving Average, Bias to Short.
5. Short to Minor Support.


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