A short Friday note for you today. It’s from a more technical analysis viewpoint, and points towards a potentially volatile weekend ahead.
My concern is growing that we might run into a rising wedge scenario. The support line is pretty strong with more than four touch points. This does give me some confidence, though, in the event that we break lower through the trendline, which is when things could get ugly.
I will consider $54k as a final confirmation, especially in combination with a 4h closing candle below the trendline. In case this happens, I see a swift move down to $47k.
In terms of the bigger picture, I see no change. We are still in a bullish scenario, but the consolidation phase will take a little longer. In my view, this is not a bad thing.