Welcme to Speculation Central! The game where noone really knows what's going to happen in the crypto market, but we just throw in some charts too! :P
I realize this is a very busy chart. but I wanted to get the ideas on the same chart for comparison sake. Right now, BTC is in the process of trying to recover from the abrupt gap down bloodbath yesterday and the alts are keeping a hard stare on BTC to try to see what they should do. All in all, as of this writing the market has not moved all that much today.
For this glimpse, I have considered two possible scenarios for the next several days and, as the title says, this is purely speculation because there is not enough chart printed yet to see if BTC is going to follow anywhere close to my lines.
BTC frequently prints diamond patterns as major reversal chart patterns, so in the center of the image I am assuming that the gap down is a gap that forms the approximate half-way point on our hypothetical diamond. Admittedly, the first half of the potential diamond has a candle pattern that hugs the trendline. Although this is unusual, it is not a TA violation that I am aware of. If BTC does finish the diamond top, then we should expect a corresponding decrease in the volume on the right half of the diamond as compared to the left half.
In this same general area of the chart we have a candle pattern that could be the left shoulder of a large H&S pattern and at the peak of making the head is where the gap down occurred. If we get a gap up relatively soon that takes us back to the 51-53k levels, I would consider that forming the rest of the H&S pattern had become more likely. To complete this pattern, BTC would also have to perform the appropriate ups & downs to generate the right shoulder and then the subsequent fall lower.
Please note that I have not included H&S measure & Bear Target lines for a few reasons...1. While this is all entirely speculation at this point, with the limited amount of chart that has been printed to date I still consider the Diamond pattern to be more likely than the H&S pattern. 2. Hypothetically speaking, if both chart patterns were to print, the diamond pattern would project a lower Bear Target outcome for BTC than the H&S pattern. 3. We dont need any more lines on my charts, seriously!
So, I would love to write a spectacular conclusion for those of you who have read this far, but until we get more candles printed onto the chart, there really isnt any "conclusion" that can be drawn. However, the purpose of this post has been to put these ideas on your radars as traders so your mind's eye can be lookgin for these as we do print more wacky candles!
DYODD. NFA.
I realize this is a very busy chart. but I wanted to get the ideas on the same chart for comparison sake. Right now, BTC is in the process of trying to recover from the abrupt gap down bloodbath yesterday and the alts are keeping a hard stare on BTC to try to see what they should do. All in all, as of this writing the market has not moved all that much today.
For this glimpse, I have considered two possible scenarios for the next several days and, as the title says, this is purely speculation because there is not enough chart printed yet to see if BTC is going to follow anywhere close to my lines.
BTC frequently prints diamond patterns as major reversal chart patterns, so in the center of the image I am assuming that the gap down is a gap that forms the approximate half-way point on our hypothetical diamond. Admittedly, the first half of the potential diamond has a candle pattern that hugs the trendline. Although this is unusual, it is not a TA violation that I am aware of. If BTC does finish the diamond top, then we should expect a corresponding decrease in the volume on the right half of the diamond as compared to the left half.
In this same general area of the chart we have a candle pattern that could be the left shoulder of a large H&S pattern and at the peak of making the head is where the gap down occurred. If we get a gap up relatively soon that takes us back to the 51-53k levels, I would consider that forming the rest of the H&S pattern had become more likely. To complete this pattern, BTC would also have to perform the appropriate ups & downs to generate the right shoulder and then the subsequent fall lower.
Please note that I have not included H&S measure & Bear Target lines for a few reasons...1. While this is all entirely speculation at this point, with the limited amount of chart that has been printed to date I still consider the Diamond pattern to be more likely than the H&S pattern. 2. Hypothetically speaking, if both chart patterns were to print, the diamond pattern would project a lower Bear Target outcome for BTC than the H&S pattern. 3. We dont need any more lines on my charts, seriously!
So, I would love to write a spectacular conclusion for those of you who have read this far, but until we get more candles printed onto the chart, there really isnt any "conclusion" that can be drawn. However, the purpose of this post has been to put these ideas on your radars as traders so your mind's eye can be lookgin for these as we do print more wacky candles!
DYODD. NFA.