Our update after the fierce dump last weekend. On saturday the markets were struggeling, but BTC found support on several touchpoints. However during the China sunday session/ (at night in European timezones), BTC saw a 13% decline in 15 minutes. We've lost our neckline of the iH&S, invalidating that pattern (and target depicted at X). Why the dump occured is not clear, and a few day's later it seems to be baised on FUD -nothing more. Overall one could argue the markets where running too hot as the ALTS had amaizing gains, and leveraged traders got washed out. So just bull-market play? Probably so. However there were some worrying formations we shoud consider. What can we get from the charts?
BTC on the daily chart
First; We collapsed from the rising wedge. Generally these tend to break upwards in bull trends, but now obviously failed to do so. We found support on the golden pocket which forms a potential channel for the future (depicted in purple). Our main concern is that a bearish 3-drives pattern over the BTC tops has formed, with a target of around 42.6k USD (which is in confluence with the golden pocket).
Very early to say -therefore depicted as grayed out- a falling wedge could form if we indeed fail to break back within the rising wedge soon.
BTC on a 15 min. chart
But... what is happening on a lower time-frame? Do we have signs confirming the short-term bear trend? So far the bounce hasn't been exuberant. To get back into the ring, we need to tackle the depicted purple box of resistance. What would swing us over?
Currently an Adam & Eve is forming. Within the "Eve" part, an iH&S is forming. In total targeting 59.5K USD, comfortly bringing us back within the rising wedge. And again, getting back within the range of the rising wedge would mean bull-continuation. The first target we need te clear is 56.5k USD, which is the neckline for the Adam & Eve. If we fail to clear the purple box, you might consider to scale down your positions and scale back in towards our target of 42.6k USD.
BTC.D
ALTS remain relatively strong. Pushing down the BTC dominance. This also shows the market has confidence in the overall market.
Lead the pack.
BTC on the daily chart
First; We collapsed from the rising wedge. Generally these tend to break upwards in bull trends, but now obviously failed to do so. We found support on the golden pocket which forms a potential channel for the future (depicted in purple). Our main concern is that a bearish 3-drives pattern over the BTC tops has formed, with a target of around 42.6k USD (which is in confluence with the golden pocket).
Very early to say -therefore depicted as grayed out- a falling wedge could form if we indeed fail to break back within the rising wedge soon.
BTC on a 15 min. chart
But... what is happening on a lower time-frame? Do we have signs confirming the short-term bear trend? So far the bounce hasn't been exuberant. To get back into the ring, we need to tackle the depicted purple box of resistance. What would swing us over?
Currently an Adam & Eve is forming. Within the "Eve" part, an iH&S is forming. In total targeting 59.5K USD, comfortly bringing us back within the rising wedge. And again, getting back within the range of the rising wedge would mean bull-continuation. The first target we need te clear is 56.5k USD, which is the neckline for the Adam & Eve. If we fail to clear the purple box, you might consider to scale down your positions and scale back in towards our target of 42.6k USD.
BTC.D
ALTS remain relatively strong. Pushing down the BTC dominance. This also shows the market has confidence in the overall market.
Lead the pack.
However we didn't put in a lower low, and just broke out of the descending channel/slightly broadening wedge. The target would bring us within the purple box, right against some newly formed resistance. Nothing is certain unless we get into the rising wedge (above the purple box).