Just had a quick look at the 4hr Bitcoin chart and noticed that the last 2 price swings have looked very similar. A large, quick run up in price followed by a lengthy consolidation in a tight range (flag pattern). Then price breaks out and has another large, quick run up in price followed by another consolidation in a triangular formation (pennant pattern). Eventually it breaks upwards again and peaks out at the top. So far, on the way back down from the previous high, we can see a clear bear flag that formed and broke to the downside. When i flipped the fractal over and lined it up based off the breakdown of the flag pattern, it fit very nicely.
Now, it wont be perfect and the proportions may be off slightly but when I matched up the breakdown of the channel, I noticed the end of the pattern lined up almost exactly with my other targets before I found the potential fractal.
I found a zone where we should bounce from if we want to maintain bullish pressure.
This zone is between $3475-$3510, it has a few confluences listed on the chart.
- 78.6 fib retracement level
- Previous significant S/R level
- Fractal ends right at the bottom of this zone
If we want to maintain bullish pressure, this will be a great zone to bounce from.
A clear break below will make me believe we are coming down for a double bottom.
Now, it wont be perfect and the proportions may be off slightly but when I matched up the breakdown of the channel, I noticed the end of the pattern lined up almost exactly with my other targets before I found the potential fractal.
I found a zone where we should bounce from if we want to maintain bullish pressure.
This zone is between $3475-$3510, it has a few confluences listed on the chart.
- 78.6 fib retracement level
- Previous significant S/R level
- Fractal ends right at the bottom of this zone
If we want to maintain bullish pressure, this will be a great zone to bounce from.
A clear break below will make me believe we are coming down for a double bottom.
