BTC 4H level has formed an ascending wedge, is it going back to 100k again?
An ascending wedge is typically seen as a bearish pattern, but certain specific conditions must be met for it to have a higher success rate:
1. The initial segment of the wedge must be a strong downward move;
2. During the gradual rebound process of the wedge, the highest point should not exceed the 0.618 retracement level of the left downward segment.
3. The flatter the slope of the upper and lower edges of the wedge, the higher the bearish efficiency; the steeper the slope, the poorer the bearish effect;
In some large range fluctuation structures, the trend structure maintained by the ascending wedge is the standard higher lows and higher highs. If the left side of the market has not formed a clear bearish trend, then the logic of the ascending wedge as a continuation pattern becomes untenable. Instead, at the end of the wedge, the price breaks through both the upper boundary of the range and the upper boundary of the wedge, leaving behind a large number of trapped shorts that become fuel for the price to move out of the trending market.
The essence of the wedge is structural expression; the root of market logic is the key. Blindly chasing shorts carries risks; trading below the right side is advisable.
