Before laying them out, you'll see my reversal WXY pattern above. It is made up of an downtrend (with two 12345 waves) forming the "W", then the minor bounce to form the "X", then an accumulation pattern/ABCDE pattern to complete the "Y".
IF this plays out and we go north towards the blue dashed resistance, then we will start getting excited...meaning we 1) see BTC break right through 2) get rejected then breakthrough OR 3) get rejected big time. This last scenario is what we need to watch out for.
IF we get a big rejection and head South, I'll start praying for the blue dashed line that has been acting as a support to catch mr btc . If we do, we will probably go sideways alllllll summer long. Looking back at previous BTC patterns (read link below titled "Warning your head will explode" for more information) when we didn't go after a triple bottom, we went sideways or south. If we bust downward through our blue dashed support then I'll enter "PANIC" mode. With the lack of liquidity in btc , low , and lack of confidence (since breaking triple bottom support), we will get into some very low territories...but let's not get into that yet.
So what are we looking for in order to break the blue dashed line. Pretty easy actually...during the rise if you see a major movement upwards in price when a good piece of news is published, get ready because the market is starting to turn into a bull. For now though, all good news as limited reaction to the market, which means I'll change my name momentarily...
Bitmex is known for Market Makers and there is a great medium post that discusses this, realize that this does influence price like this. Normally shrimps do not have access to this type of information and cannot see when longs vs shorts are lopsided. The chart for Bitfinex is not helpful since the leverage is so low compared to the 100x leverage on Bitmex. Interestingly enough, we found solid support on the blue hashed support, again. Trade is still active.