Bull Cup-N'Handle + Descending Wedge + 5th Wave,Oh Bear Div too?
HI.
This chart looks messy, let me break it down, followed by an counterargument. Might sound more like a rant at the end, sorry just short of time to write it out professinally heh
a. I see a strong cup and handle formation, the blue bars at the far right depict the expected target (target= distance from top of right handle to lowest point added to the breakout of handle).
b. Their is a bullish descending wedge that is close to breaking out (it is still possible for us to see sub 9 dollar prices for a tad bit longer) all depicted by the wedge with a green gradient.
c. We have formed the clearest elliot wave formation straight out of elliot wave books. We have a clear 1,2,3,4... If wave 2 is a straight shot, generally wave 4 is a zig zag and vice versa, wave 3 is overextended, even a truncated wave at the end of wave 1. Wave 4 briefly touched the high/support from wave 1, wave 5 is expected to reach higher than 3 at minimum.
5. Targets, their is really only one to me: 1.68. Depicted through Fib levels
6. Stochastic RSI is oversold
7. Volume is non existent pending break out.
8. Doji (depicted by the green arrow)
9. COUNTER ARGUMENT TO MY BULLISH POSITION: Bear Div... lower lows in indicators and higher highs in price (more on this below)
In otherwords, I expect EOS/BTC to break out of its descending wedge eventually solidifying the cup and handle formation, leading to the strong push beyond the highs of wave 3, shooting up to as high as .0035 btc (the 1.68 fib level. Now, thinking ahead... the reason for the bearish div could help explain what is expected at the end of wave 5.... and bearish ABC pattern completing an even larger WAVE 1 supercycle, cycle, or whatever you would like to deem it. I know their is an ongoing debate on the EOS constitution, setting this aside; consider EOS block activity ( blocktivity.info/ ), consider EOSRAM ( eos.feexplorer.io/ ), and the blooming base of developers. EOS has demonstrated demand in block activity, created its own market for a valuable asset such as RAM thus adding extra liquidity and complexity to its viability, and has clear demand from developers to create stronger consumer based blockchain applications. Oh and its on Bitmex too...and the strengh in its block activity really only includes the first month of mainchain activity. Also I encourage you to draw out a parallel channel from bottom of wave 2 to 4, and another with the top of wave 3, notice how the cup n handle target, 1.68 and the 5th wave meet at that top part of the channel.
Lastly, remember...after Wave 5 we begin a bear move down, Wave A will get alot of FOMO to buy the "DIP" and Wave B will break everyone down to sell at a loss and you will see FUD NEWS EVERYWHERE..."EOS IS A SCAM,EOS PRICE CONTROLLED BY WHALES, BLOCK PRODUCTION IS TAMPERED WITH, EOS HACKED," crap like that (not that we havn't had this before). BUT...the proceeding Wave 3 will be the one that makes us money.
This chart looks messy, let me break it down, followed by an counterargument. Might sound more like a rant at the end, sorry just short of time to write it out professinally heh
a. I see a strong cup and handle formation, the blue bars at the far right depict the expected target (target= distance from top of right handle to lowest point added to the breakout of handle).
b. Their is a bullish descending wedge that is close to breaking out (it is still possible for us to see sub 9 dollar prices for a tad bit longer) all depicted by the wedge with a green gradient.
c. We have formed the clearest elliot wave formation straight out of elliot wave books. We have a clear 1,2,3,4... If wave 2 is a straight shot, generally wave 4 is a zig zag and vice versa, wave 3 is overextended, even a truncated wave at the end of wave 1. Wave 4 briefly touched the high/support from wave 1, wave 5 is expected to reach higher than 3 at minimum.
5. Targets, their is really only one to me: 1.68. Depicted through Fib levels
6. Stochastic RSI is oversold
7. Volume is non existent pending break out.
8. Doji (depicted by the green arrow)
9. COUNTER ARGUMENT TO MY BULLISH POSITION: Bear Div... lower lows in indicators and higher highs in price (more on this below)
In otherwords, I expect EOS/BTC to break out of its descending wedge eventually solidifying the cup and handle formation, leading to the strong push beyond the highs of wave 3, shooting up to as high as .0035 btc (the 1.68 fib level. Now, thinking ahead... the reason for the bearish div could help explain what is expected at the end of wave 5.... and bearish ABC pattern completing an even larger WAVE 1 supercycle, cycle, or whatever you would like to deem it. I know their is an ongoing debate on the EOS constitution, setting this aside; consider EOS block activity ( blocktivity.info/ ), consider EOSRAM ( eos.feexplorer.io/ ), and the blooming base of developers. EOS has demonstrated demand in block activity, created its own market for a valuable asset such as RAM thus adding extra liquidity and complexity to its viability, and has clear demand from developers to create stronger consumer based blockchain applications. Oh and its on Bitmex too...and the strengh in its block activity really only includes the first month of mainchain activity. Also I encourage you to draw out a parallel channel from bottom of wave 2 to 4, and another with the top of wave 3, notice how the cup n handle target, 1.68 and the 5th wave meet at that top part of the channel.
Lastly, remember...after Wave 5 we begin a bear move down, Wave A will get alot of FOMO to buy the "DIP" and Wave B will break everyone down to sell at a loss and you will see FUD NEWS EVERYWHERE..."EOS IS A SCAM,EOS PRICE CONTROLLED BY WHALES, BLOCK PRODUCTION IS TAMPERED WITH, EOS HACKED," crap like that (not that we havn't had this before). BUT...the proceeding Wave 3 will be the one that makes us money.
Comment:
I meant to saw notice how the different indicators such as cup and handle target 1.68 fib level, etc *almost meet together to me a strong indicator that .0035 is a highest target and .0032 as a minimum target
Comment:
*meant to say,
Comment:
Still have a little more wedge to explore + note 2 day double bottom stochastic rsi + 1 day stoch is halfway down as well.
Still have a little more wedge to explore + note 2 day double bottom stochastic rsi + 1 day stoch is halfway down as well.
Comment:
When EOS is set to outpace BTC but the market also believes EOS > ETH for now
When EOS is set to outpace BTC but the market also believes EOS > ETH for now