We already reached the neckline of the adam & eve on 5/5!
A very important update on bitcoin! I would have posted this much sooner, but as murphy's law would have it, just as everything reached the neckline, and the turned back towards the downside, my computer's hard drive failed and the day prior to that I broke the lcd screen on my phone essentially locking me out of my crypto accounts. Phone took 2 days to fix, but my computer has been having all its data backed up on it for the past 5 days in a row and micro center still hasn't finished backing it up yet. So for now I've had to resort to using a lenovo tablet that's memory can't handle more than a webpage at a time and trying to move trendlines around on a chart takes 10 times as long because it keeps moving the wrong trendlines. Because of these technical difficulties, it took me way longer than it should have to go back and reevaluate the double bottom trendlines and come to an exciting and very encouraging realization. The Adam portion of the double bottom's left trendline is actually a notch or 2 higher than the tip of its right trendline. Because of the height difference between the 2 lines, the neckline of the double bottom is actually on more of a downward sloping angle than originally thought. Due to this, the curving pink eve trendline has already converged with the neckline of the double bottom on May 7th, but the price action actually already broke above the neckline 2 days prior to that on Cinco de Mayo. The price action did not stay above the neckline long enough to trigger the double bottom breakout however and is likely now just forming a handle to attach to the eve portion of the double bottom's cup like exterior. Eve seems to be multi tasking taking on the roles of both a cup and handle and a double bottom at the same time. The question now is just how deep and how wide Eve's handle will go before it breaks upward and back above the neckline to trigger both the cup and handle and the double bottom. One guess I have is the longstanding horizontal grey line that has acted both as strong resistance and strong support in the past. It sits just below the 9,000 mark, and that is around the exact same area that the projected price drop of the recently triggered head and shoulders pattern had us dropping to as well. On top of that we can see that the 4hr stoch rsi now has plenty of room to go back upward and that the standard rsi would just then hit oversold conditions upon reaching that zone. All a perfect recipe for a huge rebound bounce. Hopefully you followed my opinion from a few ideas back on limit selling a few pips below the psychological resistance of 10k with a stop buyback set up a pip or 2 above the 1day chart's 200 MA that was sitting as strong back up resistance just above the 10k resistance. If so you'd be sitting pretty right now, and could buy back in comfortably once this handle's downtrend is finally over for a nice profit. It's exactly what I was planning to do myself but having both my trading devices break on me back to back days prevented me from getting my limit sell in on time. Next time I will be better prepared and will always expect the unexpected. One thing to never expect however is for what I share here to be financial advice, for it never is and your financial advisor I am not. Choose your own path and make your own decisions if you choose to base any of your decisions on any of my ideas you do so on your own accord and at your own discretion. I wish you luck and in my next idea I will go into details about the hidden cup and handle fractal I'm seeing throughout many alt coins right now and how it lends feasibility to the entire price action of 2018 from bitcoin being potentially inside one big cup and handle pattern Stay tuned for that one and as always, be excellent to eachother and thanks for reading!
Comment:
One other important thing to note is that we have yet to form a lower low and will only do so if the price action dips below $8830. Odds are good therefore that the bottom of the handle will be higher than that price however it's still very possible for the handle to create a couple lower lows before finding it's bottom. If it dips below $8830 it will likely fall further after that and make a considerably deeper handle for Eve's cup however it will likely just form a higher low and we can be pretty confident at that point the bottom of the handle will probably be in.
Comment:
s3.amazonaws.com/tra...shots/k/k6Inlfa0.png a closeup of the current handle we can see it's clearly a falling wedge which breaks bullishly upward more often than not. If the price stayed within this wedge it could go as far down as 8600 before breaking upward but hopefully the horizontal grey support line can bounce it upward out of the wedge before it has a chance to form a lower low. Even upon a break upward from this wedge keep in mind we could still bounce downward a couple times off the neckline before finally getting back above the neckline long enough to trigger its breakout so it may not be a bad strategy to limit sell right at the neckline if we revisit it soon and then put a stop buy back a few pips above the first major resistance above it