the_batman
Short

Late Explanation for this Consolidation Pattern

BTCE:BTCUSD   Bitcoin / Dollar
(NOTE: I've elaborated and clarified in this post: https://www.tradingview.com/v/epXhajOr/)

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.)

The blue horizontal lines show my calculated price reversal zone (aka resistance levels). This *appears* to be a textbook case: all points in the PRZ are tested in one swing, and then not really tested again. (NOTE: The pattern comes out much more clearly on the other exchanges.)

This explanation runs contrary to what we'd normally expect from a consolidation pattern: continuation of the next-largest trend. However, it's consistent with the notion that the formation may have been a messy descending triangle .

(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.)
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