Five days ago I posted the following fractal comparison:
I mentioned that even though a repeat of the May fractal was realistic, the emergence of the Golden Cross (i.e. the MA50 (blue trend-line) crossing above the MA200 (orange trend-line)) on the 1D time-frame, could invalidate the pattern and reverse it upwards.
Well today this 1D Golden Cross has been formed and Bitcoin is trying to capitalize on yesterday's rise. So what can prevent this rise from taking place? Since the price is trading within a Megaphone Pattern currently, that inevitably draws more comparisons with May as BTC was also trading within a Megaphone before the flash crash.
It goes without saying that the reasons for the crash were fundamental (Musk and Chinese bans on mining) but there is a certain technical level to look out for. That's the 0.786 Fibonacci retracement level where the price got rejected on May 10th (actually a little below that level). Currently that's at 50460 so we could assume that breaking above it and extending the Megaphone will be the last confirmation (following the 1D Golden Cross) for the invalidation of bearish patterns. If not, then we can expect the price to drop further and seek support on the 1W MA50 (red trend-line). On a side note, see how similar the LMACD patterns are between the Megaphone fractals.
What's your take on this? Will the 1D Golden Cross invalidate the bearish fractals or won't make a change? Feel free to share your work and let me know in the comments section!
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I mentioned that even though a repeat of the May fractal was realistic, the emergence of the Golden Cross (i.e. the MA50 (blue trend-line) crossing above the MA200 (orange trend-line)) on the 1D time-frame, could invalidate the pattern and reverse it upwards.
Well today this 1D Golden Cross has been formed and Bitcoin is trying to capitalize on yesterday's rise. So what can prevent this rise from taking place? Since the price is trading within a Megaphone Pattern currently, that inevitably draws more comparisons with May as BTC was also trading within a Megaphone before the flash crash.
It goes without saying that the reasons for the crash were fundamental (Musk and Chinese bans on mining) but there is a certain technical level to look out for. That's the 0.786 Fibonacci retracement level where the price got rejected on May 10th (actually a little below that level). Currently that's at 50460 so we could assume that breaking above it and extending the Megaphone will be the last confirmation (following the 1D Golden Cross) for the invalidation of bearish patterns. If not, then we can expect the price to drop further and seek support on the 1W MA50 (red trend-line). On a side note, see how similar the LMACD patterns are between the Megaphone fractals.
What's your take on this? Will the 1D Golden Cross invalidate the bearish fractals or won't make a change? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
--------------------------------------------------------------------------------------------------------
!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!
🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> Vergnes
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