So before I get started I just want to say I hope you are all having a great weekend so far. For today's chart, I decided to take a look at the bearish wave pattern Bitcoin has been forming over the last month. What I found was that both the drops and bounces I concentrated on are pretty symmetrical. I am using the 12-hour time frame and concentrating on drops lasting more than 7 candles leading up to a bounce that also lasted more than 7 candles. As you can see from the chart the first drop I identify from high to low is approximately $1600 followed by a bounce of approximately $700. Then moving to the second drop you can see that again from high to low it is also approximately $1600, once again there is a bounce lasting more than 7 candles which from low to high is around $700. So looking at the current drop Bitcoin is in the middle of if this pattern repeats a third time I would estimate a low around $5200 before there is a bounce lasting more than 7 candles (3.5 days). I realize I could be full of crap (wouldn't be the first time!) and it might just be a coincidence that the last two are so similar but what the hell lets see how this plays out! Looking at the chart I can see that Bitcoin is entering what I would classify as a pretty strong support zone from about $5800 down to $5400, so getting to my target of about $5200 without a significant bounce may be a little tough. Anyway, right or wrong I really enjoy attempting to analyze chart patterns and appreciate you taking the time to look it over.
Take care!
BigskyCrypto
Take care!
BigskyCrypto