Master Pattern Recognition! Bitcoin May Fall To 4100! (BTC)
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, you can see that the bear flag did break to the downside, after making contact with the 20 EMA (in blue.) If you've been following my Litecoin posts, you know that I've been covering a repetitive pattern there. The same pattern exists in Bitcoin, and I've commented on that in the past. So, let's take a look at this incredible pattern, to assess the likely progression from here.
Starting from the bear flag, on the left center of the chart, you can see that we broke down from it, producing a sharp bottom (pink arrow.) This bottom was followed by a quick rally that extended above the 50 EMA (orange arc) which then produced a bear flag that had a small breakdown. After the small breakdown, there was a short consolidation phase, followed by a (spike) above the 20 EMA (in blue.) From there, BTC stalled, and then it rolled over in a sustained selloff that resulted in a $1200 loss.
Since then, the pattern has repeated itself PERFECTLY! We've had the same bear flag breakdown, that produced a sharp spike (pink arrow) then a rally above the 50 EMA (orange arc) followed by a bear flag that broke down slightly, into a consolidation that produced a spike back above the 20 EMA (in blue.)
If you look at the current action, we are right at the 20 EMA after the spike. In the original pattern, this is right where the major breakdown began. So, if this pattern is going to continue to repeat itself, perhaps we will see a similar decline. Now, here's where it gets even more fractal. I've copied the flagpole (dotted trendline) from the breakdown after the spike, and I've pasted it in front of the most recent action, since that is the move that would actually complete the pattern. Obviously, it doesn't have to be to the exact same magnitude, but what I found is that a similar breakdown will take us right near the blue rising trendline — A very important near term support level for BTC. IN FREAKIN CREDIBLE! I am absolutely blown away, by the repetitive nature of this pattern, and you should be too. This is showing us that if the pattern completes itself, we could potentially see a drop that takes us down to the rising blue trendline, which would put BTC near 4100.
With that said, this pattern has been very useful since I've been covering it, but repetitive patterns like this can end unexpectedly. So, that is something to keep in mind. However, until evidence of that emerges, we have to assume that the pattern will continue. Therefore, I'm expecting a continuation breakdown, to emerge in the near future, to complete this pattern. That breakdown could potentially take us to the critical rising blue trendline, around 4100 dollars.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Starting from the bear flag, on the left center of the chart, you can see that we broke down from it, producing a sharp bottom (pink arrow.) This bottom was followed by a quick rally that extended above the 50 EMA (orange arc) which then produced a bear flag that had a small breakdown. After the small breakdown, there was a short consolidation phase, followed by a (spike) above the 20 EMA (in blue.) From there, BTC stalled, and then it rolled over in a sustained selloff that resulted in a $1200 loss.
Since then, the pattern has repeated itself PERFECTLY! We've had the same bear flag breakdown, that produced a sharp spike (pink arrow) then a rally above the 50 EMA (orange arc) followed by a bear flag that broke down slightly, into a consolidation that produced a spike back above the 20 EMA (in blue.)
If you look at the current action, we are right at the 20 EMA after the spike. In the original pattern, this is right where the major breakdown began. So, if this pattern is going to continue to repeat itself, perhaps we will see a similar decline. Now, here's where it gets even more fractal. I've copied the flagpole (dotted trendline) from the breakdown after the spike, and I've pasted it in front of the most recent action, since that is the move that would actually complete the pattern. Obviously, it doesn't have to be to the exact same magnitude, but what I found is that a similar breakdown will take us right near the blue rising trendline — A very important near term support level for BTC. IN FREAKIN CREDIBLE! I am absolutely blown away, by the repetitive nature of this pattern, and you should be too. This is showing us that if the pattern completes itself, we could potentially see a drop that takes us down to the rising blue trendline, which would put BTC near 4100.
With that said, this pattern has been very useful since I've been covering it, but repetitive patterns like this can end unexpectedly. So, that is something to keep in mind. However, until evidence of that emerges, we have to assume that the pattern will continue. Therefore, I'm expecting a continuation breakdown, to emerge in the near future, to complete this pattern. That breakdown could potentially take us to the critical rising blue trendline, around 4100 dollars.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Comment:
Here is my Litecoin update, in which you can see the exact same pattern, but a little more clearly.
