BTC - Rising Wedge Retest

Don't get fooled by this uptrend — BTC is still primed for its next leg to the downside. This upside move was predicted, and here are the ideas that outlined it.

When BTC originally broke below the rising wedge, I stated: "It is possible for price to retest the lower green trendline, flipping old support into new resistance before continuing lower." This was labeled "Watch for Retest?" in this post:


Please also refer to that post for all the breakdown targets I am watching for once this retest is complete.

Then on Sunday night, I published this follow-up post:


This is the the most important chart to reference right now, as it outlined both scenarios for BTC heading into this week. Specifically, on the left chart I stated: "If positive headlines emerge, the technical structure lines up for BTC to see a fairly solid bounce, potentially rallying as high as $69,000–$70,000."

On Monday, bullish headlines emerged and sent all markets higher. BTC printed its current high at $69,310 right within the predicted retest range labeled "Watch for Retest" on the chart.

Now that the retest has occurred, the most probable scenario is that the next leg to the downside begins.

However, if Trump's comments tonight do indeed change the broader narrative, the weekly outlook scenario outlined on the right chart of my last post remains very much in play. If BTC is able to reclaim back above the bottom of the wedge, a massive move to the upside could follow.

That remains the less likely scenario, but one worth being aware of, and one I will update if price breaks back into the wedge. For now, respect the structure and be prepared for a downside move to begin after today's close.