Descending triangle is being formed. horizontal support with lower highs. This is a bear continuation. A higher pump above previous run 9,9-10k would cancel. Any reversal below last high will see us complete the triangle and move much lower. Descending triangles can see continuation declines that match to the length of its widest point in the triangle. For $BTC this is roughly 5,700. Dangerous times potentially ahead for $BTC.
This market correction has yet to test the 100 ma which it did back in 2014 crash before recovering. The 200 ma did not exist yet and has not been tested since it's inception. If a true correction, a visit to these crucial zones should follow a successful descending triangle formation. Unknown territory from there. If BTC recovers it won't be without some bruises.
Descending triangles normally confirm in the 60% region of its formation but this current pump could extend that formation easily.
-If we break a higher high then reassess.
-If we reverse with a lower high then be very wary.
-In case of successful descending formation, buy opportunities at ma's where we should see bounces. Set wise stop-losses.
-In case of higher high and bull reversal, former highs will play as crucial resistances and turn to support after successful breakouts.
*Should go without saying ignore the time frame.
This market correction has yet to test the 100 ma which it did back in 2014 crash before recovering. The 200 ma did not exist yet and has not been tested since it's inception. If a true correction, a visit to these crucial zones should follow a successful descending triangle formation. Unknown territory from there. If BTC recovers it won't be without some bruises.
Descending triangles normally confirm in the 60% region of its formation but this current pump could extend that formation easily.
-If we break a higher high then reassess.
-If we reverse with a lower high then be very wary.
-In case of successful descending formation, buy opportunities at ma's where we should see bounces. Set wise stop-losses.
-In case of higher high and bull reversal, former highs will play as crucial resistances and turn to support after successful breakouts.
*Should go without saying ignore the time frame.
Comment:
Currently testing 50 ma. A slight break above does not confirm much. Looking for a higher high. Even if it breaks 50ma a reversal could ensue shortly after. Watch for Bull traps.
Comment:
Rejection from the 50 MA. Descending triangle pattern appears to be completing though we will wait for the weekly close before we make that assumption.
-Major support at 7k and 6k. A break below 6k-5,700 will see us with a volume spike and heavy sell off. Targeting 100 MA for a bounce from there.
-Major support at 7k and 6k. A break below 6k-5,700 will see us with a volume spike and heavy sell off. Targeting 100 MA for a bounce from there.
Comment:
We now see the drop off underway. Admit it went longer than expected to the Apex. We should see some volume return which could speed up the process and give us opportunities to make some make off the bounces from 200 MA.
Comment:
To Update this we are looking at the 2,8-3,1 levels as our potential bottom. If it can not hold then we may see a slide to 1k the former highs of past run. Look for volume to confirm but we will not be out of a down trend until we form a higher and higher low. That will be the true indicator.
Comment:
Bounced from that 200 Ma as expected. If you followed this chart you made some good make. I should close it but ill let it ride for now. Thanks for following guys.
Trade closed: target reached