On the , you can see that we're still expanding lower, under a crossover, but the momentum curve seems to be flattening a bit. That's a normal thing to see, during a consolidation, so I wouldn't read into it too much. The sell that we saw yesterday was about five times higher than average, so the sellers are definitely here.
I'm sure some of you are wondering "Magic, why don't you throw out that pattern?" The reason is because it is technically not invalidated. Technically, the pattern will remain valid, until BTC surpasses the head on the downside — meaning it falls below 6000. With that said, it's common for people who don't understand market mechanics, to reject extensions of patterns, or formations that don't conform to their misguided standards of symmetry. If you were around when the series of formations was being created in BTC , you probably remember that a lot of people were criticizing me. Meanwhile, I used the original at the all time high, to generate a nearly perfect downside target. Patterns can repeat, and extend, and morph into longer or skewed versions of the original, before actually producing the move that was projected from the beginning. That's exactly what happened with the formations after the all time high in BTC . Obviously, short term fluctuations that prolong breakouts don't always change the longer term projection. We may see a series of formations here, before we get a real upside breakout. However, we have to protect ourselves from loss, by exiting when it is appropriate, or even shorting when the time is right.
So, if BTC breaks down into the pink channel, I will definitely be more , and I may even short it on the downside. However, that won't make me lose sight of the fact that a huge pattern was just formed. If I would have gone full , after the first failed to breakdown immediately at the all time high, I would have never been able to keep my focus on the longer term downside target.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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