the_batman
Short

LATE EXPLANATION FOR THIS CONSOLIDATION PATTERN (CLARIFIED)

HUOBI:BTCCNY   Bitcoin / Chinese Yuan
As of late, there's been some kind of consolidation pattern on the bitcoin chart. It looks like a lot of things (descending diagonal, triangle, descending triangle , measured move) but simultaneously doesn't quite "feel" like its any of them. The only thing that's for sure is that it's a consolidation formation (note the descending volume pattern).

I offer one simple explanation: the bat pattern . This pattern represents the re-testing of a critical support/resistance level. (In this case, we'd be looking at a re-test of 375-400/2300-2400.)

The blue horizontal lines show my calculated price reversal zone (aka resistance levels). This *appears* to be a textbook case: (1) the retracement/projection levels indicate that this is the "ideal bat" variant, (2) all points in the PRZ are tested in one swing, and then not really tested again.

The bat pattern is consistent with the descending triangle that sort of appears on some BTCUSD             charts.

(I'm not super familiar with the harmonic patterns . I don't trust this explanation and I don't trust this whole formation. Take this post with salt.)
As a point of additional note: there's another, much smaller bat formation that immediately follows this one (where X starts at D). That's pretty textbook too.
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