-Fib Arc from the recent high of 450 to the recent low of 255, defines areas of support and resistance.
-Descending triangle is what caused the recent fall in Bitcoin's price, the price took us down to a support area at 255 which is defined by a long term support line and Bitcoin's long term falling wedge (please see my linked chart for what I mean). The descending triangle is defined by my white trend lines.
-A Falling wedge has appeared to form. It is defined by my purple trend lines. The Resistance line is well tested and shows clear resistance, admittedly the support line was only tested twice, however for a third test of the support line, a break of the current Fibonacci support would be required. Overall, it is important to remember a falling wedge is a sign of a possible reversal.
Although further declines are possible, this downtrend appears to exhausted. To take a contrarian investor point of view, buying the dips is a profitable way to make money in an overly pessimistic market.
-Descending triangle is what caused the recent fall in Bitcoin's price, the price took us down to a support area at 255 which is defined by a long term support line and Bitcoin's long term falling wedge (please see my linked chart for what I mean). The descending triangle is defined by my white trend lines.
-A Falling wedge has appeared to form. It is defined by my purple trend lines. The Resistance line is well tested and shows clear resistance, admittedly the support line was only tested twice, however for a third test of the support line, a break of the current Fibonacci support would be required. Overall, it is important to remember a falling wedge is a sign of a possible reversal.
Although further declines are possible, this downtrend appears to exhausted. To take a contrarian investor point of view, buying the dips is a profitable way to make money in an overly pessimistic market.
