Today we will review one interesting pattern in trading, which appears rarely in the world of technical analysis. The pattern can be seen below on BTC D1 TF is called a compound fulcrum. The pattern consist from inverse H&S and H&S patterns inside a wedge.
This is a very bullish pattern and sign for atleast local reversal. BTC is currently at a point where it has to make a major move.
BTC D1 TF (Bitcoin Compound Fulcrum pattern)
The similar patterns we've seen in the past, for example copper. Between 1975 and 1979, Copper Futures entered a compound fulcrum which is very close resembles the one we see in the case of BTC. As we see Copper Futures price made 2x after compound fulcrum.
Copper Futures 1974-1979 (Compound Fulcrum pattern)
Capestone Turbine Corporation (CPST) daily chart below shows that compound fulcrums have also been seen in stocks. Between August 2013 and December 2013, we saw CPST trade in a compound fulcrum. Towards the beginning of January, the price shot up to the top of the wedge and then broke out of it to continue a new bullish cycle and also made 2x rise.
CPST D1 TF Aug 2013 - Jan 2014 (Compound Fulcrum pattern)
So now lets discuss what target is by BTC according to compound fulcrum pattern.
Before reversing trend to bullish BTC should breakthrough EMA21 (7000$) and EMA50 (7180$) on weekly timeframe (BTC W1 TF), then the road to bullish market will be opened.
According to our previously mentioned DIAMOND pattern we have the target at 7800$. Now lets add target by compound fulcrum: first one at 8500$ and then second at 10000$.
BTC D1 TF (Targets by BTC Compound Fulcrum pattern)
SUMMARY
I have a feeling that soon we can see bullish rally without returning back to 6k$ level. Previously I've supposed that BTC will rise to the area at 7200$-7400$ and then drops back to 6300$ or even lower to 5850$, but now I'm in doubt about falling back.
Anyway hope you have opened your LONG positions and after each rise we will update stoploss.
And important remark: dont expect non-stop rise till 8500$ or 10000$, the rise will be with bounces at restistance levels at around 7050$-7200$ (EMA21 and EMA50 on D1 TF / Kijun on D3 TF) and at around 7700$-8200$, depending on how fast the rise will be, BTC could probably bounce from lower border of Ichimoku cloud on D3
This is a very bullish pattern and sign for atleast local reversal. BTC is currently at a point where it has to make a major move.
The similar patterns we've seen in the past, for example copper. Between 1975 and 1979, Copper Futures entered a compound fulcrum which is very close resembles the one we see in the case of BTC. As we see Copper Futures price made 2x after compound fulcrum.
Copper Futures 1974-1979 (Compound Fulcrum pattern)
Capestone Turbine Corporation (CPST) daily chart below shows that compound fulcrums have also been seen in stocks. Between August 2013 and December 2013, we saw CPST trade in a compound fulcrum. Towards the beginning of January, the price shot up to the top of the wedge and then broke out of it to continue a new bullish cycle and also made 2x rise.
So now lets discuss what target is by BTC according to compound fulcrum pattern.
Before reversing trend to bullish BTC should breakthrough EMA21 (7000$) and EMA50 (7180$) on weekly timeframe (BTC W1 TF), then the road to bullish market will be opened.
According to our previously mentioned DIAMOND pattern we have the target at 7800$. Now lets add target by compound fulcrum: first one at 8500$ and then second at 10000$.
SUMMARY
I have a feeling that soon we can see bullish rally without returning back to 6k$ level. Previously I've supposed that BTC will rise to the area at 7200$-7400$ and then drops back to 6300$ or even lower to 5850$, but now I'm in doubt about falling back.
Anyway hope you have opened your LONG positions and after each rise we will update stoploss.
And important remark: dont expect non-stop rise till 8500$ or 10000$, the rise will be with bounces at restistance levels at around 7050$-7200$ (EMA21 and EMA50 on D1 TF / Kijun on D3 TF) and at around 7700$-8200$, depending on how fast the rise will be, BTC could probably bounce from lower border of Ichimoku cloud on D3
Comment:
www.tradingview.com/chart/7dFXYPgX/
Comment: