Dear Reader,
I offer a hypothesis.
1. An impulse wave sequence completed ending with (5) marked on my chart.
2. This also forms part of a symmetrical triangle where the last high (D) has been reached and BTC is presumably headed downwards to point (E)
3. Within the symmetrical triangle close to (D) and highlighted in yellow, BTC has formed an ascending wedge.
Three conditions must be considered for my idea to be valid.
1. BTC must respect the upper bounds of both the rising wedge and symmetrical triangle. This condition has likely been met.
2. BTC must break down from the lower bound of the rising wedge, then meet with the lower bound of the symmetrical triangle at point (E). We understand that the price will rise and fall in waves on it's way to this destination.
3. BTC must break down from the symmetrical triangle and meet it's profit target (T. Bulkowski - The Pattern Site) at the region of $3300.
It makes a great deal of sense to me that $3300 would be an excellent price for institutional investors to come aboard and drive BTC to a new high. I have no evidence of this. .. just speculating !
Best of luck and happy trading!
I offer a hypothesis.
1. An impulse wave sequence completed ending with (5) marked on my chart.
2. This also forms part of a symmetrical triangle where the last high (D) has been reached and BTC is presumably headed downwards to point (E)
3. Within the symmetrical triangle close to (D) and highlighted in yellow, BTC has formed an ascending wedge.
Three conditions must be considered for my idea to be valid.
1. BTC must respect the upper bounds of both the rising wedge and symmetrical triangle. This condition has likely been met.
2. BTC must break down from the lower bound of the rising wedge, then meet with the lower bound of the symmetrical triangle at point (E). We understand that the price will rise and fall in waves on it's way to this destination.
3. BTC must break down from the symmetrical triangle and meet it's profit target (T. Bulkowski - The Pattern Site) at the region of $3300.
It makes a great deal of sense to me that $3300 would be an excellent price for institutional investors to come aboard and drive BTC to a new high. I have no evidence of this. .. just speculating !
Best of luck and happy trading!
Comment:
Please see the BTC 15 minute chart below. If the second bear flag which is presently forming does validate, then we would have a breakdown from the ascending wedge (see idea above). Condition 2 would be met.
Comment:
Looks like a broadening wedge at the moment on the 15 min chart, which is a continuation pattern. It changes nothing!
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The downward spike which is visible on my last update threw me off. I had a look at the pattern on the hourly. Still looks like a very big bear flag. Same outcome expected.
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Expecting a smaller flag and another drop ...
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small flag .. BIG FLAG ... on the way to $8800
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I cannot believe that such repetitive formations are a result of natural market movement. If this ain't the result of algorithmic trading, I don't know what is !!
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I note that on faster tick resolutions, BTC has sliced through the 200 EMA like a knife though hot butter. I'm going to take a leap and state that it's probably going to happen on the 4 hourly and the daily also. I know many people are expecting a pullback around $8800 (200 EMA daily - very likely I admit), but I think we could see it happen @ $ 8572 (0.382 retracement of the major up-cycle "bull run"). However, it will be short lived and only as a function of a completed H&S pattern ... until then .. more bear flags!
Comment:
Big bear! ..
Down to $6850 and then a bounce to $8350 (50% - wave B) ??
Down to $6850 and then a bounce to $8350 (50% - wave B) ??