I believe I've identified a potential Three Hills & a Mountain pattern on ApeCoin's hourly and daily charts. At the time of this idea --- and should my projection be correct -- we are beginning the transition to the third hill. The supporting evidence for my idea is the following:
1) Both of the completed hills declined to, or near, their 61.8% Fibonacci levels as is consistent with the Three Hills & a Mountain pattern.
2) While they appear similar, both completed hills are of different magnitudes which separates itself from the Three Drives pattern.
I made a crude projection for the third hill and price target by using downtrend Fibonacci levels (in red) to identify a 61.8% level between the first and second hill. The purpose of this level is to identify a potentially strong support that would ultimately lead to the rally of the Mountain.
It is my understanding that the Mountain rallies at a magnitude equal to the lowest and highest value of the Three Hills which in this case would be $1.292 (indicated in white). Assuming this is correct, a rally of this proportion would bring us to a target price around $2.770.
APEUSD
1) Both of the completed hills declined to, or near, their 61.8% Fibonacci levels as is consistent with the Three Hills & a Mountain pattern.
2) While they appear similar, both completed hills are of different magnitudes which separates itself from the Three Drives pattern.
I made a crude projection for the third hill and price target by using downtrend Fibonacci levels (in red) to identify a 61.8% level between the first and second hill. The purpose of this level is to identify a potentially strong support that would ultimately lead to the rally of the Mountain.
It is my understanding that the Mountain rallies at a magnitude equal to the lowest and highest value of the Three Hills which in this case would be $1.292 (indicated in white). Assuming this is correct, a rally of this proportion would bring us to a target price around $2.770.
APEUSD
Comment:
The second hill has finally completed.
Comment:
The value of APE has declined further than I expected and is potentially setting up for a head and shoulders pattern. After reviewing the 1D chart I believe the token's current decline won't last much longer, however, I will be remaining cognizant of significant resistance around the $1.50 range as this could confirm a H&S.
Key indicators:
- Dwindling volume with decreasing value (suggests the current trend is temporary)
- Money Flow Index (MFI) is approaching oversold territory
- Recovery to the $1.70 range could confirm that APE is back on track for the 3 Hills & a Mountain
Key indicators:
- Dwindling volume with decreasing value (suggests the current trend is temporary)
- Money Flow Index (MFI) is approaching oversold territory
- Recovery to the $1.70 range could confirm that APE is back on track for the 3 Hills & a Mountain
Trade closed manually:
I no longer believe that APE is following a Three Hills & a Mountain pattern. The second hill's support failed and it appears that a Head & Shoulders pattern is forming. Fortunately I believe this is just one step back to take two steps forward. On a macro-level, a valid H&S would facilitate the development of a double bottom which is very bullish.
Should APE meet significant resistance around the $1.55 level over the next week or two, a breakdown back to $1.00 is probable. I will be watching for significant support at this level.
Should APE meet significant resistance around the $1.55 level over the next week or two, a breakdown back to $1.00 is probable. I will be watching for significant support at this level.
