A Falling Wedge is currently forming, and this falling wedge pattern in the 15-Minute time frame is bullish, which could indicate that the chances of us breaking up is more significant at this point and the chances of breaking down.
I would advise, for those who didn't know is this; don't trade until the breakout. We only deal when we break resistance or break support.
We are talking about a scenario where the target is the top of the wedge, which is, in this case, $40000 approximately So that should be the target if we break off. We could still see a target of about $38-39k. That's if we are a bit lower than the previous mark. The stop loss would be at maybe 1-2% approximately. This gives us a scenario of 4% against 1%.
If it were to break to the downside, we could entertain the idea of a short position, which is the most logical place to take profits. Let's target the $35,500 level because of some previous support and resistance.
If we do break to the downside, I think a trade of 5% would make a lot of sense.
We are already forming a head-and-shoulders pattern on today's bitcoin chart. We did see a breakdown of this already; we had already broken the neckline. Right now, the high price is retesting previous support, and it's turning into resistance. The target is at $36,370, so this is a little bit weird because now we have a bearish target and a bullish target at the same time. If we break out above the pattern's neckline, then the bearish target is gone; it's no longer valid. The reverse is the case if we see a rejection.
Now, about Ethereum, it seems to be forming an exciting rectangle that should have a slight bullish bias when we do have an option like this. So the chances break into the upside-only slightly higher than breaking to the downside. If the support breaks, then I think that we could entertain a little short down to the previous resistance here.
The key here is that we are coming down to retest support, and this could be a nice short to retest the support that will be 4.3%. For a potential long, if we break the resistance, I think we could see a small trade of approximately 2.7%. You could also potentially treat this as a bull flag, which means we have a much more bullish target of 1337 elite. If we do see this scenario play out, then it'll be a trade of approximately 8%.
Take a look at these trade setups. If you do target this level, we have an 8% gain against a potential stop loss at maybe 2.2% or maybe 2.5 approximately. We see a potentially excellent risk-reward ratio.
