BEARISH BUTTERFLY PATTERNS ARE KNOWN TO OCCUR AT THE TOP OF A BULLISH TREND AND CAN ACT AS TEMPORARY (OR COMPLEATE) TREND REVERSAL. COMMON TO BE FOUND IN WAVE 5 OF ELLIOT''S WAVE THEORY OR AT THE BEGINING OF AN ABC RETRACEMENT WAVE SEGMENT THERE REMAINS THE POSSIBLITY FOR MORE BEARISH ACTION TO CONTINUE. THIS DOES NOT RULE OUT A POTENTIAL BRIEF PULLBACK AFTER REACHING THE FIRST TARGET MARKED IN GREEN LOCATED AROUND $14.2k PLEASE TAKE SOME OR ALL PROFIT HERE. PRICE WILL LIKELY PULL BACK UP A BIT BEFORE CONTINUING ANY BEAR TREND.
PLEASE NOTE AS WITH MANY OTHER HARMONIC PATTERNS THIS PATTERN CAN SOMETIMES PLAY OUT REAL QUICKLY OR VERY VERY SLOWLY. PRICE MAY ALMOST LOOK TO BE GOING SIDEWAYS AT TIMES. ***PLEASE BE PATIENT PRICE WILL FALL!**** POTENTIAL AREAS TO LOOK FOR A PATTERN FALIURE ARE MARKED ON THE LEFT SIDE OF THE CHART WITH THE GREEN ARROWS. THEY LINE UP WITH THE LETTERS THAT MAKE UP THE BEARISH BUTTERFLY PATTERN. THESE ARE AREAS THAT PRICE MAY REVERSE. BE CARFUL NOT TO FOMO OUT HOWEVER, BE SURE PRICE IS REVERSING IT CAN BE TRICKY ESPECIASLLY IN SLOW PRICE ACTION. SHOULD PRICE BE REVERSING UP THE OTHER WAY CLOSE OUT THE WHOLE POSITION. BETTER TO TAKE SOME PROFIT THAN NONE!
MOST EVERYTHING IS ON THE CHART. PLEASE NOTE THAT "POINT D" LINES UP WITH THE .786 FIB RETRACEMENT FROM $20k DOWN TO $3.2k AND IS A PERFECT FIB RETRACEMENT AREA FOR PRICE TO REVERS IN ITSELF.
ALSO, BTC SEEMS TO BE FORMING AN ASCENDING WEDGE AS SEEN OUTLINED IN THE CHART WITH THE TOP RESISTANCE LINE IN SOLID WHITE AND THE SUPPORT LINE IN DOTTED WHITE AND MAKES THE RIGHT WING OF THE BEARISH BUTTERFLY PATTERN.... GENERALLY, WHEN ASCENDING WEDGES BREAKOUT THEY TEND TO FALL BACK DOWN TO THEIR BASE AND USSUALLY IS THE TAKE PROFIT AREAS WHEN TRADING AN ASCENDING WEDGE. IRONICALLY, THIS TAKE PROFIT AREAS LINES UP PERFECTLY WITH THE TAKE PROFIT TARGET OF THE EBEARISH BUTTERFLY RIGHT AROUND THE $14.2k AREA.
IF INTERESTED AND AFTER PRICE REACHES MY FIRST TARGET OF $14.2k I MAY MAKE A NEW CHART BETTER DETAILING INDICAITORS USED AND BE ABLE TO APPLY BETTER ANALYSIS WITH ADDITTIONAL PRICE ACTION.
THANK YOU AND GOOD LUCK!!!
PLEASE NOTE AS WITH MANY OTHER HARMONIC PATTERNS THIS PATTERN CAN SOMETIMES PLAY OUT REAL QUICKLY OR VERY VERY SLOWLY. PRICE MAY ALMOST LOOK TO BE GOING SIDEWAYS AT TIMES. ***PLEASE BE PATIENT PRICE WILL FALL!**** POTENTIAL AREAS TO LOOK FOR A PATTERN FALIURE ARE MARKED ON THE LEFT SIDE OF THE CHART WITH THE GREEN ARROWS. THEY LINE UP WITH THE LETTERS THAT MAKE UP THE BEARISH BUTTERFLY PATTERN. THESE ARE AREAS THAT PRICE MAY REVERSE. BE CARFUL NOT TO FOMO OUT HOWEVER, BE SURE PRICE IS REVERSING IT CAN BE TRICKY ESPECIASLLY IN SLOW PRICE ACTION. SHOULD PRICE BE REVERSING UP THE OTHER WAY CLOSE OUT THE WHOLE POSITION. BETTER TO TAKE SOME PROFIT THAN NONE!
MOST EVERYTHING IS ON THE CHART. PLEASE NOTE THAT "POINT D" LINES UP WITH THE .786 FIB RETRACEMENT FROM $20k DOWN TO $3.2k AND IS A PERFECT FIB RETRACEMENT AREA FOR PRICE TO REVERS IN ITSELF.
ALSO, BTC SEEMS TO BE FORMING AN ASCENDING WEDGE AS SEEN OUTLINED IN THE CHART WITH THE TOP RESISTANCE LINE IN SOLID WHITE AND THE SUPPORT LINE IN DOTTED WHITE AND MAKES THE RIGHT WING OF THE BEARISH BUTTERFLY PATTERN.... GENERALLY, WHEN ASCENDING WEDGES BREAKOUT THEY TEND TO FALL BACK DOWN TO THEIR BASE AND USSUALLY IS THE TAKE PROFIT AREAS WHEN TRADING AN ASCENDING WEDGE. IRONICALLY, THIS TAKE PROFIT AREAS LINES UP PERFECTLY WITH THE TAKE PROFIT TARGET OF THE EBEARISH BUTTERFLY RIGHT AROUND THE $14.2k AREA.
IF INTERESTED AND AFTER PRICE REACHES MY FIRST TARGET OF $14.2k I MAY MAKE A NEW CHART BETTER DETAILING INDICAITORS USED AND BE ABLE TO APPLY BETTER ANALYSIS WITH ADDITTIONAL PRICE ACTION.
THANK YOU AND GOOD LUCK!!!