Looking at the Daily BTC chart, what do you see?
Many see what they believe to be the peak/top of this bull cycle...
In my opinion, this would look much more "V" like if it that were indeed the case. With that said, I believe that we are looking at a "Rounded Top Pattern". See details below and let me know if you agree!
Rounding Top: Important Bull Market Results
Overall performance rank for up/down breakouts (1 is best): 2 out of 39/3 out of 36
Break even failure rate for up/down breakouts: 9%/20%
Average rise/decline: 55%/17%
Throwback/pullback rate: 63%/58%
Percentage meeting price target for up/down breakouts: 58%/14%
The above numbers are based on more than 950 of perfect trades. See the glossary for definitions.
Rounding Top: Identification Guidelines
Characteristic Discussion
Weekly or daily Rounding tops are large enough to appear on the weekly or daily chart.
Price trend Upward leading to the chart pattern.
Even ends The rims of the inverted bowl bottom near the same price, but 58% of the time the end is slightly higher than the start.
Rounded turn Prices form a gentle curve, a half moon shape.
Breakout A close above the highest high signals an upward breakout. Downward breakouts are a close below the lower of the two rims (the lowest low in the pattern).
Rounding Top: Trading Tips
Trading Tactic Explanation Rounding top measure rule
The Measure Rule
Rounding top retrace
Retrace
Measure rule Compute the height from the highest peak in the pattern (point A in the Measure Rule figure to the right) to the right rim low (B) and then multiply it by the above 'percentage meeting price target.' Add it to the price of the highest peak (A, upward breakouts) or subtract it from the right rim low (B, downward breakouts) to get a target price (C).
32% retrace For aggressive traders, if price retraces 32% of the rounding top's height, buy. The Retrace figure to the right shows an example. Measure the height from A to B and then take 32% of this. Add it to the low at B to get a target of C. C represents the buy price.
Support The two rims are support areas.
Height Tall patterns perform better than short ones.
Breakout volume Heavy breakout volume suggests better performance.
Right rim When the right rim is above the left, the pattern under performs. The Retrace figure to the upper right shows an example, with the right bottom (B) above the left (D).
Yearly low Performs slightly better when the breakout is within a third of the yearly low but samples are few (6 only).
Throwbacks and pullbacks Throwbacks and pullbacks hurt post breakout performance.
thepatternsite.com/roundingtop.html
Many see what they believe to be the peak/top of this bull cycle...
In my opinion, this would look much more "V" like if it that were indeed the case. With that said, I believe that we are looking at a "Rounded Top Pattern". See details below and let me know if you agree!
Rounding Top: Important Bull Market Results
Overall performance rank for up/down breakouts (1 is best): 2 out of 39/3 out of 36
Break even failure rate for up/down breakouts: 9%/20%
Average rise/decline: 55%/17%
Throwback/pullback rate: 63%/58%
Percentage meeting price target for up/down breakouts: 58%/14%
The above numbers are based on more than 950 of perfect trades. See the glossary for definitions.
Rounding Top: Identification Guidelines
Characteristic Discussion
Weekly or daily Rounding tops are large enough to appear on the weekly or daily chart.
Price trend Upward leading to the chart pattern.
Even ends The rims of the inverted bowl bottom near the same price, but 58% of the time the end is slightly higher than the start.
Rounded turn Prices form a gentle curve, a half moon shape.
Breakout A close above the highest high signals an upward breakout. Downward breakouts are a close below the lower of the two rims (the lowest low in the pattern).
Rounding Top: Trading Tips
Trading Tactic Explanation Rounding top measure rule
The Measure Rule
Rounding top retrace
Retrace
Measure rule Compute the height from the highest peak in the pattern (point A in the Measure Rule figure to the right) to the right rim low (B) and then multiply it by the above 'percentage meeting price target.' Add it to the price of the highest peak (A, upward breakouts) or subtract it from the right rim low (B, downward breakouts) to get a target price (C).
32% retrace For aggressive traders, if price retraces 32% of the rounding top's height, buy. The Retrace figure to the right shows an example. Measure the height from A to B and then take 32% of this. Add it to the low at B to get a target of C. C represents the buy price.
Support The two rims are support areas.
Height Tall patterns perform better than short ones.
Breakout volume Heavy breakout volume suggests better performance.
Right rim When the right rim is above the left, the pattern under performs. The Retrace figure to the upper right shows an example, with the right bottom (B) above the left (D).
Yearly low Performs slightly better when the breakout is within a third of the yearly low but samples are few (6 only).
Throwbacks and pullbacks Throwbacks and pullbacks hurt post breakout performance.
thepatternsite.com/roundingtop.html