On the 2hours time frame, the price of BTCUSD which is still consolidating inside the chart pattern has gradually formed a chart pattern.
This pattern has been explained a lot of time but we will still go through the process step by step.
Below are the steps to follows with the use of ratios and extension ratios:
Extensively we have 5 different legs to look out for and they are X,A,B,C and D legs.
XA Price rises from X to peak at A. This is typically a large upward move to accommodate the retraces that follow.
AB Price retraces from the peak A to valley B about 61.8% of the XA move.
BC After bottoming at B, price climbs to C. The BC move retraces 61.8% or 78.6% of the AB drop .
CD The final leg of the pattern sees price drop from peak C to the valley at D. The CD move is 127% or 161.8% of the BC move.
If price drops below X on the way to finding D, then the pattern should be ignored.
A bounce back up to test the retracement ratios only price has gotten to the D leg and has reversed back to the upside.
Resistance 1: $9896.61
Resistance 2: $10023.55
NOTE: price must get to the D leg at $9487.17.
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Ideas published should not be referred to as an investment advice