This pattern, the "W" -double bottom is a continuation AND reversal pattern we've been seeing on lower TF since the rally from 3.5K, it was only a matter of time until we started seeing them appear on higher TF ( fractal ).
I am BULLISH until proven otherwise.
Some (tentative rules) for ID:
Entering the “W” Pattern
(A - B) The pattern begins at an impulse move to the downside, usually 10% (+/- 6%) (C) PA will then move to a high between the .382 and .5 FIBONACCI RETRACEMENT Looking for a CANDLE BODY CLOSE above the .618 FIBONACCI RETRACEMENT (D) If no.’s 2 and 3 are confirmed, you are looking for two entry points on the: .618 FIBONACCI RETRACEMENT (golden pocket) .818 FIBONACCI RETRACEMENT (W entry) (E) Target 1 is the 1:1 FIBONACCI EXTENSION from AB (F) RE ENTRY - the .786 and .618 are RE ENTRY TARGETS (G) Target 2 is the FIBONACCI EXTENSION of BE
Rules are a WIP -but as more and more of these are ID'ed, the rules for entry get better and better.
@digitalprojectsltd, I haven't quite nailed down metrics for an "M" pattern just yet, but know them when I see them. If there is a small move up here to the top trendline (38K) and a rejection -this indeed would likely be heading towards the formation of an "M" pattern.
HOWEVER -- most "M" patterns are just 2-wave DESCENDING TRIANGLEs and fairly easy to spot on lower TF.
Maui2020
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What's interesting about this pattern the last 10 days ... it's tracking on the projected line from 2013 and 2017 tops. It is my opinion we are forming the the bottom at 35K for this cycles next correction.
BitCapJNY
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@Maui2020, I would tend to agree. But a few things: This entire bull trend since the March 2020 crash has been slow, steady, and most importantly -healthy. We have gotten sideways consolidation at EVERY significant FIB LEVEL, with an extended bullish consolidation zone at the previous ATH resistance ($18.8 - 19.5K). The way the price is climbing slowly and being bought up at EVERY dip suggests that this is just getting started. When PRICE ACTION is nearing a top, I expect increased volatility (30 - 40% swings) with an BLOW OFF TOP comparable to the +400% growth since the trend began.
My conclusions? either 1) This trend is just getting going and we have quite a bit of growth left to experience before seeing a large correction. 2) This growth is NOT as healthy as it appears, and we DO finally get a HIGHLY VOLATILE BLOW OFF TOP (somewhere just under 100K) and a significant correction (60 -80%) back down to 20K -confirming this level as NEW SUPPORT, then followed by an extended consolidation and exaggerated parabolic move back above 100K, or 3) We INDEED HAVE reached the top of this bull cycle, and we are near the top of a 3-4month BEARK MARKET (distribution and accumulation).
All 3 scenarios are perfectly logical and neither would be terribly surprising. However -the status of the USD, global financial markets, and the VERY REAL possibility of TESLA converting their USD balance sheet to BTC -I am VERY, VERY bullishly BIAS :).