Yesterday we considered the potential local long trade according to 4h bullish divergence. Today this long is actual. I skip this long consciously because this signal was flashed against the bearish divergence on the higher timeframe.
Today we can see that the BTC is in critical point. As a result I can divide two clear scenarios. The Bitcoin price is forming the rising wedge – the bearish pattern. The only question is if the price is going to break it down now or after new local higher high. The BTC bounced off exactly the 0.5 Fibonacci level. The price can grow easily above the local high to $49000 if we take in account the bullish 4h divergence. In this case the bearish divergence on 1D chart will become even stronger. In this case we are going to see the almost guaranteed dump below 33k next two month. The another one scenario is breakdown of rising wedge right now. In this case I am not going to be on the bullish side.