This is just an interesting pattern that I run too while comparing candle formations in 2019. The current price action resembles two previous patterns both of which delivered +50% gains on their final stage.
The pattern has 4 phases before the major rise:
* Sell off, where the price is aggressively sold after a peak. Possibly profit taking.
* Accumulation, where buyers emerge and defend the support.
* Recovery, where the peak before the sell off is recovered.
* Consolidation, where the majority of buyers join in before the +50% rise.
I don't know if Bitcoin can deliver such a rise this time mainly due to the 1W Descending Triangle bias and investor psychology after trading sideways on Lower Highs for over 2 months. The medium term bias remain neutral towards a monthly consolidation. But it is interesting bringing that pattern up as the similarities are too obvious to ignore.
After all keep in mind that the current levels still present a long term buy opportunity we are unlikely to see again.
@TradingShot what a magnificent analysis. you’re right, it’s too obvious to be ignored, but it’d also need some kind of catalyst to create yet another parabolic move. we’re in very uncertain times atm and although i think that the global financial situation might steer more ships into bitcoin’s harbor i can’t ignore the fact that risky assets are the first to be liquidated.
Bonfires_Down
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Isn't that just a bearish descending triangle?
CopilotThe
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Very nice setup! We think a pullback to $9,300 is very likely to take place, to thereafter break that resistance downwards.
rvbsanjose
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Failed rally on the dot. Hit the .382 resistance then went poop.
kardia
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@rvbsanjose, 50% retracement on the recent bearish engulfing candle (body) located on the 8HR chart. It could possibly go as high as the supply zone at 10744, but I doubt it will. But almost anything is possible in this market. Lol
BDG
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@TradingShot, I think you need to add another pattern to your collection. I'd like to name it for you. This 6.5% sell off today could be called the "Kick in the Pants" pattern. LOL