Hello traders,
This time I would like to breakdown a downtrend for this blockchain coin. I think it has some huge potencial to the upside as it went a significant 63% from its top.
As you can see from a chart we have 3 stages of short term bear market.
First we can see a sharp sell off from the top followed by dead cat bounce. A dead cat bounce is considered to be a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. The buying volume of dead cat bounce is weak and is followed by another breakdown.
After the breakdown it is not unusual to form some kind of side movement (triangle, bear flag, pennant) In this period short are closing some of their positions for profit and bull might be in control. It is a period of decision which side the market will be turning.
Obviously, bears were stronger in this particular chart and market sold off one more time. Quite sharp sell off, but not as quite as the first time forming a descending channel on a higher time frame (15min).
After we enter into a ranging market, where we go sideways for some time. There is a possibility to break further down, but I think it is not probable. We already formed double bottom and my suggestion would be that we form 3rd bottom and the move will be upwards.
Let's see how things will work out.
Good luck
This time I would like to breakdown a downtrend for this blockchain coin. I think it has some huge potencial to the upside as it went a significant 63% from its top.
As you can see from a chart we have 3 stages of short term bear market.
First we can see a sharp sell off from the top followed by dead cat bounce. A dead cat bounce is considered to be a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. The buying volume of dead cat bounce is weak and is followed by another breakdown.
After the breakdown it is not unusual to form some kind of side movement (triangle, bear flag, pennant) In this period short are closing some of their positions for profit and bull might be in control. It is a period of decision which side the market will be turning.
Obviously, bears were stronger in this particular chart and market sold off one more time. Quite sharp sell off, but not as quite as the first time forming a descending channel on a higher time frame (15min).
After we enter into a ranging market, where we go sideways for some time. There is a possibility to break further down, but I think it is not probable. We already formed double bottom and my suggestion would be that we form 3rd bottom and the move will be upwards.
Let's see how things will work out.
Good luck