Total Market Cap shows elementary topping pattern
This is simply just a display of the total market cap since the accumulation period prior to the bull run which spanned from 2015 to 2017. There are three trendlines drawn, all of them in green and of various slopes. Based on the slopes, we will assume that the one with the most intense slope are shorter term trendlines and the one slope with most gradual slope is the long term trendline. The line in-between both of these is the intermediate slope.
The current Head and shoulders:
There are two head and shoulders on the total market cap, the first one is from the peak of the run in 2017, the second one is from the current run. The current head and shoulder shape of the pattern is that of a standard head and shoulders with an ascending neckline indicating the strength of the run. One of the biggest and most important points to make about this head and shoulder top is that is breaks the short term trendline in the pattern and the right shoulder retested it and it was un able to make it back into the trendline. As for the volume is on point with that of a head and shoulder top with the volume mostly decreasing as the pattern completes.
The success of the Pattern:
There should be a break of the neckline on higher volume, however, higher volume is not necessary for a neckline break of a head and shoulder top. The price objective can be seen in the bigger light blue arrow. However, there are several chances where this pattern fails: one is where it fails to cross the neckline and this would evolve to be either a symmetrical triangle, or a double top; the other is when it crosses the neckline, then during a retest (throwback), it breaks back into the neckline invalidating the pattern. Both of these events are possible.
If this pattern is successful, there is a strong chance that we will revisit the very same trendline which BTC went parabolic on. If that trendline does not hold, the price objective of the current head and shoulders would make a double bottom, if it bottoms there.
Previous Analysis:
The current Head and shoulders:
There are two head and shoulders on the total market cap, the first one is from the peak of the run in 2017, the second one is from the current run. The current head and shoulder shape of the pattern is that of a standard head and shoulders with an ascending neckline indicating the strength of the run. One of the biggest and most important points to make about this head and shoulder top is that is breaks the short term trendline in the pattern and the right shoulder retested it and it was un able to make it back into the trendline. As for the volume is on point with that of a head and shoulder top with the volume mostly decreasing as the pattern completes.
The success of the Pattern:
There should be a break of the neckline on higher volume, however, higher volume is not necessary for a neckline break of a head and shoulder top. The price objective can be seen in the bigger light blue arrow. However, there are several chances where this pattern fails: one is where it fails to cross the neckline and this would evolve to be either a symmetrical triangle, or a double top; the other is when it crosses the neckline, then during a retest (throwback), it breaks back into the neckline invalidating the pattern. Both of these events are possible.
If this pattern is successful, there is a strong chance that we will revisit the very same trendline which BTC went parabolic on. If that trendline does not hold, the price objective of the current head and shoulders would make a double bottom, if it bottoms there.
Previous Analysis:
