To compare to my other idea with regards to the current state of the crypto market. If the current falling wedge repeats, it will look a little something like this!
Be cautious of the Bitcoin price at the moment, as we have formed a bearish divergence on both the 1 day and 1 week chart. This is not the cause for too much alarm however.
If we compare this action to the previous bull market, previous bearish divergences lead us to ~40% drops and retests of the weekly EMA. If this were to repeat, we should expect prices to...
Keep a close eye on the Bitcoin chart right now. We had a pretty big drop but seem to be forming an inverse head and shoulders. If this breaks we'll probably get a temporary recovery rally.
Looking the the start of the 2017 bull run, the first big run up wicked a candle that exactly touched the bottom of the daily EMA. Looking at the current situation, we have the exact same wick down to the bottom of the EMA daily in this first run up of the bull market. This is a crazy coincidence!
Let's play with the idea that we are forming a fractal, which...
Looking at the pattern we have on the 4 hour chart, we can make a case for both a symmetrical triangle and a head and shoulders. Targets are quite low at around $25k. I'm currently short since about $34k with a stop loss just above.
This would make a lot of sense from this TA point of view, and match the all time high break of the previous bull market back in...
Looking at the four hour chart we have a clearly forming symmetrical triangle. Volume is declining and the range is getting tighter. Expecting a breakout by the 20th of Jan.
This pattern gives some huge targets of around $49K if we break up or $26k if we breakdown. Pay close attention, this is going to be wild!
Personally I am very unsure of which way this could...
Bitcoin had a rather large fall and it's easy to be bearish right now, but I see a pattern that lends me to believe we are going to get a bit of bullish action in the immediate future. A inverse H&S has broken its neckline with a target all the way up at around $40k. I'm not sure we'll get all the way to $40k, but I think a realistic target is in the range of $38k...
After being bullish yesterday, Bitcoin broke the 1 hour EMA and started a down trend. I was wrong on expecting upwards movement, but correct that a 1 hour EMA break would turn me bearish. At the moment Bitcoin is stuck in a descending channel and being rejected by the EMAs above it. For the short term I would expect more down action until we break up from this channel.
Symmetrical triangle inside a larger broadening ascending channel. The larger pattern is slightly bearish but the smaller pattern is neutral. I will maintain a bullish bias until we break down due to the ongoing strong uptrend.
Bouncing off EMA, pushing up through resistance, double bottom forming? No reason to be bearish on Bitcoin just yet since we are in such a strong uptrend!
