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Writer's picturePeet Serfontein

Analyst thoughts: Bitcoin Medium-term

ALTERNATIVE VIEW: A LOW CONVICTION WEDGE PATTERN SEEMS TO BE DEVELOPING

  • Bullish potential to R3 was negated after the sharp bearish break through R1. The alternative medium-term view of a L*M wedge formation has become the preferred outlook.

  • The LM formation seems incomplete with the possibility of further C,D,E overlapping upside.

  • Interim upside off S1* to R1 is supported by oversold RSI conditions and is required to confirm the overall stance.

  • The LM formation remains unconfirmed and is thus a low conviction view.

  • S1* is the pivotal support for the illustrated view and the last bastion of hope for any bullish case.

Target and Re-assessment Levels:

Pivotal Levels: L* and S1*

Primary Trend and Target Levels: L*M overlapping gains, followed by a bear trend to S3

Prevailing Trend and Target Levels: Gains to R1

Technical Rating: Low


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