AVAX/USDT Consolidation -> Trend Continuation [Inverted Chart]
Note: I avoid directional terms like "downside" or "upside" and instead use terms like "price growth", "trend continuation", "price decay" to avoid confusion when referencing the inverted chart. "Support" still means supportive of price growth and "resistance" still means resistance against price growth.
Running through a scenario with the inverted AVAX/USDT chart with new ATHs in a trend continuation as the eventual conclusion. Local structure supports trend continuation, within the context of an ongoing consolidation. This is one of many potential consolidation patterns, why did I scenario cast this and not a wedge or something of that sort? Markets tend to pick patterns they "like" and repeat them over and over (fractals). The previous consolidation from Sept-Oct 2021 formed something of a pennant, thus I outline how a similar scenario could play out within the bounds of the downward slide we have been in since August. Note the VBP zones formed since we began forming the recent consolidation: 86-93 (surrounding .786 fib), 104-110 (between .618 and .50 fibs), 114-120 (surrounding .382 fib).
How could this go wrong? If price action were to decay to the point where it broke out of the slide and the 86-93 volume zone became resistance rather than support, that would be a signal of trend decay. Coupled with technical structure and BTC price action at that point, a breakdown of current trend structure signals a much more prolonged consolidation to come (and potentially, bear market).
Running through a scenario with the inverted AVAX/USDT chart with new ATHs in a trend continuation as the eventual conclusion. Local structure supports trend continuation, within the context of an ongoing consolidation. This is one of many potential consolidation patterns, why did I scenario cast this and not a wedge or something of that sort? Markets tend to pick patterns they "like" and repeat them over and over (fractals). The previous consolidation from Sept-Oct 2021 formed something of a pennant, thus I outline how a similar scenario could play out within the bounds of the downward slide we have been in since August. Note the VBP zones formed since we began forming the recent consolidation: 86-93 (surrounding .786 fib), 104-110 (between .618 and .50 fibs), 114-120 (surrounding .382 fib).
How could this go wrong? If price action were to decay to the point where it broke out of the slide and the 86-93 volume zone became resistance rather than support, that would be a signal of trend decay. Coupled with technical structure and BTC price action at that point, a breakdown of current trend structure signals a much more prolonged consolidation to come (and potentially, bear market).