Tension is in the air. Anticipation is through the roof and Bitcoin 3.51% is free falling! Well it was, before my idea got taken down. Lucky for me, now I can rewrite my idea knowing that we've just broke above the black resistance line! However we shouldn't get too excited just yet. We have the strong dark red dashed resistance line to get through first and then I will be long on Bitcoin! Before that though we have the upcoming G20 summit so who knows what could happen next! I think now is a great time to step back and watch this blockbuster from the comfort of our computer screens. While we wait for the show to start, we should pay attention to market sentiment, find the key areas of importance and plan for each event so no matter what happens, we will crush it! Let's do this!
Market Sentiment
Considering we have had a strong break above this wedge pattern, all we need a catalyst to really get this bad boy going. At this summit tomorrow there will be discussion of everything BLOCKCHAIN and CRYPTO. Blockchain is a part of crypto, not the other way round, so they will be separated in these discussions and there are a number of countries that are pro-blockchain and anti-crypto. I expect there to be positive and negative news for crypto and something that is inevitable is regulation. It will probably hurt in the short term but will make crypto stronger later on. Even if the overall reception is 'not bad', I think the crypto community will take it as a plus! We are an optimistic space! However, nobody knows what exactly will happen. I’m going to be listening closely and tweeting as much information as possible.
Key Areas of Importance
Since the bull trap just above the dark red dashed resistance line, we have formed a descending wedge pattern. While retracing towards the support zone , we managed to break upwards from the pattern! The dark red dashed resistance line is the next important level to break. Once we have broke this, there is a high probability we will be going up from here.
A Plan For Each Event
Now the bulls have got their act together and ended wave - e once and for all, we could be forming the perfect bullish scenario. If we break the dark red dashed resistance line and hold prices above here, we could enter a long trade knowing there is a high probability we will succeed. We would be trading the reversal on the right side of the market because of the support zone on the chart (remember: long-term, this has always been a bull market) and if news from the G20 summit supports the bulls then we could see explosive action upwards from here. Also, we have the divergence on the RSI for three lows! I will try to catch the break of the dark red dashed resistance line, if it’s too late then I will wait for a pull back. If the market doesn’t break the next resistance and goes sideways then I will wait for support and resistance to form before taking action as we may be entering a less volatile phase. If we don't break the resistance and we fall back towards the support zone then I will be monitoring how the market acts at these levels as a strong break down could keep us in a bearish market for a good amount of time longer. In such case I would be short, short, short!
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