BTC / USD 6th February TA
I believe there is a fair probability we have " bottomed out " once and for all at 6k and here is why.
In this TA I have spent around 1 hour 50 on, I will be going over the different patterns I have spotted and what they mean in terms of the relative supports, resistances and growth for BTC if these patterns play out. I have tried to cover all the patterns I see playing out and I will go over each one and how probably they are from currently this point in time (which may be irrelevant if they are far away).
Elliot wave Price Correction~
~ The 0 A B C wave correction pattern is a classic wave pattern which occurs potentially during a bear market. Here I have spotted it from bitcoin's ATH, where it has met the pink dotted trend line (bare in mind not support, but in this instance we can treat it as one as it is relatively strong given historical value). We are now at the last leg and ready to bounce from it essentially, we have got to the end of a bear pattern, and hit a trend line so we can state this gives the graph a good probability- given the market gains traction that it will break the semi-dashed yellow support line.
More info on this pattern: http://www.elliottwave.net/educational/basictenets/basics3.htm
Triangles~
~I will keep this short and sweet and not go into too much detail about the triangles as there isn't too much to over analyse here anyway.
We have had TWO completed descending triangles, with a potential third one to complete the pattern of them using the solid support (as it has already broken the last dashed support quickly). However saying that I believe we won't see any use of the solid support purely because of the trend line that was obeyed by the bounce today, and I believe we won't break the trend line over the week- which will form us a potential ascending triangle! An ascending triangle would put us into a bull run for range of the next support. Oh glorious 10.8k.
https://www.investopedia.com/articles/technical/03/091003.asp
Inverse Head and Shoulders~
~Marked by the light blue curved lines we see almost a logarithmic inverse head and shoulders. If the ascending triangle formation plays out and hovers above the 10.8k support we could be well back onto a bull run to 12k zone from a completion of this inverse head and shoulders formation, which I imagine it would be quite probable for it to play out given it would struggle to break the support above and the one it is sitting on if we see the bounce.
https://en.wikipedia.org/wiki/Head_and_shoulders_(chart_pattern)
Volume~
~There has been a MASSIVE green volume stick today, bigger than a long time~ usually historically a sign of a bull run, we wait for confirmation on that tomorrow how it will play out.. PHAT green lines mean PHAT green gainz.
Arrows~
~The arrows are just simply stating where the price is likely to go after the tail of the arrow is met by a candle. Red means down. Orange sideways. Green up.
Conclusion
Xander what do you think will happen?!
My prediction would be it completes the ascending triangle formation, and then we get an inverse head and shoulders completed. However I would only act on this if I get confirmation at the end of the ascending triangle it is going to go up with healthy volume and a green candle the next day/during the next day.
I am an 18 year old doing TA, I'm no financial advisor & you should do your OWN research & only invest whatever you are willing to lose. This is only an opinion, not concrete advice.
Follow me on trading view, and like this post if you found my opinion interesting!
Xander.
I believe there is a fair probability we have " bottomed out " once and for all at 6k and here is why.
In this TA I have spent around 1 hour 50 on, I will be going over the different patterns I have spotted and what they mean in terms of the relative supports, resistances and growth for BTC if these patterns play out. I have tried to cover all the patterns I see playing out and I will go over each one and how probably they are from currently this point in time (which may be irrelevant if they are far away).
Elliot wave Price Correction~
~ The 0 A B C wave correction pattern is a classic wave pattern which occurs potentially during a bear market. Here I have spotted it from bitcoin's ATH, where it has met the pink dotted trend line (bare in mind not support, but in this instance we can treat it as one as it is relatively strong given historical value). We are now at the last leg and ready to bounce from it essentially, we have got to the end of a bear pattern, and hit a trend line so we can state this gives the graph a good probability- given the market gains traction that it will break the semi-dashed yellow support line.
More info on this pattern: http://www.elliottwave.net/educational/basictenets/basics3.htm
Triangles~
~I will keep this short and sweet and not go into too much detail about the triangles as there isn't too much to over analyse here anyway.
We have had TWO completed descending triangles, with a potential third one to complete the pattern of them using the solid support (as it has already broken the last dashed support quickly). However saying that I believe we won't see any use of the solid support purely because of the trend line that was obeyed by the bounce today, and I believe we won't break the trend line over the week- which will form us a potential ascending triangle! An ascending triangle would put us into a bull run for range of the next support. Oh glorious 10.8k.
https://www.investopedia.com/articles/technical/03/091003.asp
Inverse Head and Shoulders~
~Marked by the light blue curved lines we see almost a logarithmic inverse head and shoulders. If the ascending triangle formation plays out and hovers above the 10.8k support we could be well back onto a bull run to 12k zone from a completion of this inverse head and shoulders formation, which I imagine it would be quite probable for it to play out given it would struggle to break the support above and the one it is sitting on if we see the bounce.
https://en.wikipedia.org/wiki/Head_and_shoulders_(chart_pattern)
Volume~
~There has been a MASSIVE green volume stick today, bigger than a long time~ usually historically a sign of a bull run, we wait for confirmation on that tomorrow how it will play out.. PHAT green lines mean PHAT green gainz.
Arrows~
~The arrows are just simply stating where the price is likely to go after the tail of the arrow is met by a candle. Red means down. Orange sideways. Green up.
Conclusion
Xander what do you think will happen?!
My prediction would be it completes the ascending triangle formation, and then we get an inverse head and shoulders completed. However I would only act on this if I get confirmation at the end of the ascending triangle it is going to go up with healthy volume and a green candle the next day/during the next day.
I am an 18 year old doing TA, I'm no financial advisor & you should do your OWN research & only invest whatever you are willing to lose. This is only an opinion, not concrete advice.
Follow me on trading view, and like this post if you found my opinion interesting!
Xander.