Anatomy of a Bear Market: 2018 Bear Market Correction Start, H4
In the Anatomy of a Bear Market Series I compare different Bitcoin Bear markets using Ichimoku and S/R: The start of the 2018 bear market on H4 looks almost exactly like the current bear market on a larger TF D1.
And it has ended with a major sell-off => the current market on D1 is bearish and will end with a major sell-off too.
2018 bear market's structure:
- both flat cloud tops and bottoms, thick cloud => mixed market
- shallow S1 and S2 supports => somewhat healthy bullish correction like in 2013
- no major S1, S2 => somewhat bearish like in 2014
- steep trend line angle => likely an up trend, like in 2013
- substantial S3 dip but relatively shallow compared to the prior bull run. Proved to be not enough for a bullish continuation.
- key trend support is broken after bouncing down from the cloud
This 2018 H4 market structure is similar to the 2014 Bear Market and the current 2018 Bear Market on a daily.
Conclusions:
- It's almost always the battle of 2 triangles: asc S1-S2 vs dsc R1-R2
- After bouncing from the trend line we are on our way to the cloud. If we reach the cloud, we will likely bounce down, break the trend line and have a major bearish sell-off at the end.
Good Luck!
Please don't trade based only on my analysis. This is not a financial advice. Do you own research to confirm.
And it has ended with a major sell-off => the current market on D1 is bearish and will end with a major sell-off too.
2018 bear market's structure:
- both flat cloud tops and bottoms, thick cloud => mixed market
- shallow S1 and S2 supports => somewhat healthy bullish correction like in 2013
- no major S1, S2 => somewhat bearish like in 2014
- steep trend line angle => likely an up trend, like in 2013
- substantial S3 dip but relatively shallow compared to the prior bull run. Proved to be not enough for a bullish continuation.
- key trend support is broken after bouncing down from the cloud
This 2018 H4 market structure is similar to the 2014 Bear Market and the current 2018 Bear Market on a daily.
Conclusions:
- It's almost always the battle of 2 triangles: asc S1-S2 vs dsc R1-R2
- After bouncing from the trend line we are on our way to the cloud. If we reach the cloud, we will likely bounce down, break the trend line and have a major bearish sell-off at the end.
Good Luck!
Please don't trade based only on my analysis. This is not a financial advice. Do you own research to confirm.
Comment:
Compare with the current market on D1:
