BTC wedge break, will support hold?
BTC looks to have just broken wedge support that many have been speaking of recently. I think the question for many now is "is it in fact a bearish pennant and is a crash imminent".
If a crash were to occur and the price stays in the descending channel (orange lines on the logarithmic chart), there is indeed quite a bit of downward potential to near 16-20K, so there is understandable concern.
However, if this indeed is a pennant, it is rather surprising that a) it didn't break downward until the apex of the triangle, and b) that it did not "flash crash" and that I have even been able to write this post hours after the breakout of the wedge. It is additionally interesting to see many altcoins still staying healthily in positions against BTC, but we shall see how long that may be the case I suppose.
A key point of interest looks to be the key support for the logarithmic trend line (yellow dashed line) that looks like it may be key support shortly. If this breaks and stays broken below 32K, then I plan on keeping a close watch on the descending channel. However, if a support continues, it will be interesting if it can continue for the next week to break out of the channel (around June 13th or so).
Either way, it looks like some of the boring action might coming to a halt as all eyes start to eye BTC once again.
And of course, this is only my opinion and in no way is meant as financial advice. But please like or comment if you agree or see anything differently or in addition to these thoughts.
If a crash were to occur and the price stays in the descending channel (orange lines on the logarithmic chart), there is indeed quite a bit of downward potential to near 16-20K, so there is understandable concern.
However, if this indeed is a pennant, it is rather surprising that a) it didn't break downward until the apex of the triangle, and b) that it did not "flash crash" and that I have even been able to write this post hours after the breakout of the wedge. It is additionally interesting to see many altcoins still staying healthily in positions against BTC, but we shall see how long that may be the case I suppose.
A key point of interest looks to be the key support for the logarithmic trend line (yellow dashed line) that looks like it may be key support shortly. If this breaks and stays broken below 32K, then I plan on keeping a close watch on the descending channel. However, if a support continues, it will be interesting if it can continue for the next week to break out of the channel (around June 13th or so).
Either way, it looks like some of the boring action might coming to a halt as all eyes start to eye BTC once again.
And of course, this is only my opinion and in no way is meant as financial advice. But please like or comment if you agree or see anything differently or in addition to these thoughts.
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