In this study, we’re going to discuss pendant features and how logarithmic retracements help determine the likely direction of a breakout.
A neutral pendant occurs when price consolidates through an equilibrium formed by the convergence of two inversely related Fibonacci channels. If the bullish and bearish influences are balanced, each market impulse inside of the pendant will retrace to the logarithmic .618. This produces a level pendant where the outlook is completely neutral based on this analysis.
In the case of bitcoin, the initial impulse inside of the pendant retraced to the .618 at 3200, but it was followed by an over-performing bull market which took us to the .786 at 14k. If 6500 serves as a bottom, it means the price will have found support at the .5, one step above the golden .618. Because of this, bitcoin is outperforming would we would expect in a neutral pendant.
To give you a visual. I’ve used to triple combo waves to highly the bullish and neutral price action inside of a pendant.
I added in some bullish projections to excit the moon boys.
A neutral pendant occurs when price consolidates through an equilibrium formed by the convergence of two inversely related Fibonacci channels. If the bullish and bearish influences are balanced, each market impulse inside of the pendant will retrace to the logarithmic .618. This produces a level pendant where the outlook is completely neutral based on this analysis.
In the case of bitcoin, the initial impulse inside of the pendant retraced to the .618 at 3200, but it was followed by an over-performing bull market which took us to the .786 at 14k. If 6500 serves as a bottom, it means the price will have found support at the .5, one step above the golden .618. Because of this, bitcoin is outperforming would we would expect in a neutral pendant.
To give you a visual. I’ve used to triple combo waves to highly the bullish and neutral price action inside of a pendant.
I added in some bullish projections to excit the moon boys.