Before we go any further, I've noticed that a lot of the haters out there, seem to think that formations always produce instant moves when they're completed. However, that isn't always the case. You can see on this chart, that BTC formed a huge pattern, at the all-time high, but then traded sideways, forming more subsequent patterns, before finally breaking down. When I called for downside on the original pattern, so many haters crawled out of the woodwork to criticize my analysis. Looking at the chart today, you can see that I was perfectly correct. The same thing is happening now. We formed a , and I called for downside, but it only dropped to form another , inside of a symmetrical triangle (which is a continuation pattern.) Obviously the correct call to make is to the downside. That doesn't mean that we will instantly get a move to the downside. You can see that we actually broke out to the upside, but that move failed, and now BTC is poised to head lower. Since we know that BTC is in a , and we've had a succession of patterns and continuation patterns during a downtrend, I'm going to keep the call simple. I'm going to break it down in layman's terms for you, and type it real, real, s-l-o-w.
We are in a . This is a bear market. The formations produced, suggest a continuation to the downside, potentially to my target. No matter what happens going forward, as long as BTC stays between those pretty pink , this market is headed lower. Was that simple enough?
Initial downside support rests at each low point formed inside of the symmetrical triangle. Below the low formed on the 17th, the next would be at the 78.6% retrace. On the upside, the 50 (in orange,) should obviously continue to act as the ceiling in this market.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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