Today I will be looking at HYPBTC as it exited a descending wedge which usually is a good reversal pattern (to the upside). Unfortunately the chart below doesn’t show the whole formation and the Daily chart is far to messy for illustrative purposes.
We have already tested the 23.6% retracement level from the last significant highs to the lows and failed which is bearish. Also if we take the Fibonacci levels from the start of the wedge to the lows we failed before we got to the 38.6% retracement also bearish.
The lack of follow through should be concerning for the bulls and should give impetus for a sell on rallies for the bears. The bulls can take solace in the fact that they are still above the breakout point of the pattern and they have a big target to complete. I can’t think of any fundamental reason to buy this pair but the technicals guide us around how to trade the pair.
Are there any pairs you would like me to analyze ?
HYPBTC
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Disclaimer: This is not trading or investment advice.
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