[NOTE: I anchored my pitchfork incorrectly. See updated chart below in comments.] Despite the broad interpretation of the past weeks as nothing more than a descending triangle (understood to be a bearish signal), the price action has clearly left the consolidation phase and a new rally is underway. The old bull channel trend lines from weeks before are still visible in the incline of even the small rallies within this consolidation phase. But the biggest indication that we are not immediately due for a major selloff is the extremely long amount of time we have remained at this support level. There is no other period since the November rally than can compare in terms of horizontal support and stability over such a long period. Thus, we can expect confidence in this new floor will lead to a new bullish breakout at any moment.
Comments
Feralscale
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Unfortunately, I had the same inference. I did not expect the floor to give away as it has either and got my load points quite wrong. I still believe a rally up to the 848 is in the making. The next consolidation level is going to result in a buy-in pressure point. Quite looking forward to it. Appreciate your chart and the comments, as always.
SunnyBTC
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is this is still valid, Ron?
ronfkingswanson
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I moved my pitchfork anchors to be on the selloff instead, which gives a little more room ;-) exact timings on these movements are pretty impossible to predict
ronfkingswanson
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yeah, so I incorrectly labeled the rally on the 5th as a wednesday [facepalm] ignore plz.
MikeD
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Can be the trigger 31th of January? Does this suit in the time frame?
ronfkingswanson
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I personally think the significance of the 31st has already been priced into the market. There is no surprise to be had there. And I also don't think the bulls are going to wait that long when they have such a flat springboard to jump from.