Twin Pair of crossroads with historical resistance and patterns
Over the last few months there have been several major crashes which are always followed by very strong rallies in compensation. None of these have managed to break the bear trend we have been in since the top. We are, right now, days away from a convergence of this trend with the overall log growth that started in early 2013, got touched with the Silk Road crash in October 2013 and the Chinese crash in April of 2014.
I made the assumption that the previous ATH of $266 will not be broken, so in all likelyhood we will continue bouncing down with decreasing volatility each time. Each crash is slightly less severe than the last by an alarmingly consistent -7%. This makes a very nice 45% drop from $548 in the next crash if we break the bear trend in the next 10-14 days which would follow the pattern we have been in. The rebound shown is completely arbitrary, it will depend on where the bearish trend is when the price is headed back up into a bull trap. From there, I expect the price to re-test $266 once, maybe twice, while getting squeezed into another crossroads late this summer before following a much shallower log growth.
On the flip side, if we manage to break out higher in the next 10-14 days, there is a clear shot to AT LEAST $548 and most likely ~$700.
Highly speculative, so lets see what happens!
I made the assumption that the previous ATH of $266 will not be broken, so in all likelyhood we will continue bouncing down with decreasing volatility each time. Each crash is slightly less severe than the last by an alarmingly consistent -7%. This makes a very nice 45% drop from $548 in the next crash if we break the bear trend in the next 10-14 days which would follow the pattern we have been in. The rebound shown is completely arbitrary, it will depend on where the bearish trend is when the price is headed back up into a bull trap. From there, I expect the price to re-test $266 once, maybe twice, while getting squeezed into another crossroads late this summer before following a much shallower log growth.
On the flip side, if we manage to break out higher in the next 10-14 days, there is a clear shot to AT LEAST $548 and most likely ~$700.
Highly speculative, so lets see what happens!
