This graph represents the inverse chart of the top 10 Cryptocurrencies' market cap. I spotted a few conflicting signals which I described using 3 forecasting lines (Red, Blue, and Green lines). With correct SLs, TPs, and open orders set - great profits can be made.
Furthermore, I will rate the likeliness of each potential outcome
Outcome 1 (red line) (Bullish for this graph/Bearish for BTC)
Reasoning:
-Successful breakout from the closest white line to the current (Aug 22) candlestick. Therefore, the breakout should continue.
-Purely following the trend and candlesticks patterns, a strong move to the upside last week should be followed by a few(range of the red line) bullish candles.
-Last week's bullish close flipped the signal from bearish to bullish in the Trend-Based Fib extension analysis. This is due to last week's candle bullishly absorbing the whole bearish movement from the last 3 weeks, to close above the 1(128.3) fib support.
Although last week's candlestick closed close to the 1(128.3) fib support, the move be seen as a retest(from the fib line).
Likelihood of happening: 5/10
Outcome 2 (blue line) (Bullish for this graph/Bearish for BTC)
Reasoning:
-The closest purple line to the current (Aug 22) candlestick is retested (to the downside) from a failed breakout to the upside.
-After the fall it shall bounce off its next and major diagonal support presented as the lower purple line with the same gradient. It is a strong support line; the high time frame makes it even stronger.
-Afterwhich, the bullish rally should continue, to hit the top Fib lines within the extension.
Likelihood of happening: 6/10
Outcome 3 (green line) (Bearish for this graph/Bullish for BTC)
Reasoning:
-The first anticipated fall follows the same idea as Outcome 2, but follows with stronger bearish action.
-A turning point (to the downside) in the current trend may be spotted by the candlesticks reversing at the black line running through the middle of the chart. It is acting as one of the strongest resistance points on the chart.
Likelihood of happening: 5/10
It is important to know that we are heading into a scary, unique recession. It is critical to account for fundamental factors. Some fundamental analysis can be found on my page.
Plz like and subscribe if you enjoyed my content :)
Furthermore, I will rate the likeliness of each potential outcome
Outcome 1 (red line) (Bullish for this graph/Bearish for BTC)
Reasoning:
-Successful breakout from the closest white line to the current (Aug 22) candlestick. Therefore, the breakout should continue.
-Purely following the trend and candlesticks patterns, a strong move to the upside last week should be followed by a few(range of the red line) bullish candles.
-Last week's bullish close flipped the signal from bearish to bullish in the Trend-Based Fib extension analysis. This is due to last week's candle bullishly absorbing the whole bearish movement from the last 3 weeks, to close above the 1(128.3) fib support.
Although last week's candlestick closed close to the 1(128.3) fib support, the move be seen as a retest(from the fib line).
Likelihood of happening: 5/10
Outcome 2 (blue line) (Bullish for this graph/Bearish for BTC)
Reasoning:
-The closest purple line to the current (Aug 22) candlestick is retested (to the downside) from a failed breakout to the upside.
-After the fall it shall bounce off its next and major diagonal support presented as the lower purple line with the same gradient. It is a strong support line; the high time frame makes it even stronger.
-Afterwhich, the bullish rally should continue, to hit the top Fib lines within the extension.
Likelihood of happening: 6/10
Outcome 3 (green line) (Bearish for this graph/Bullish for BTC)
Reasoning:
-The first anticipated fall follows the same idea as Outcome 2, but follows with stronger bearish action.
-A turning point (to the downside) in the current trend may be spotted by the candlesticks reversing at the black line running through the middle of the chart. It is acting as one of the strongest resistance points on the chart.
Likelihood of happening: 5/10
It is important to know that we are heading into a scary, unique recession. It is critical to account for fundamental factors. Some fundamental analysis can be found on my page.
Plz like and subscribe if you enjoyed my content :)
