It appears that Adam & Eve bottom is forming for $ETHBTC, which is a solid reversal pattern. It's a double bottom pattern characterized by the first, sharp V-shaped bottom (a.k.a. Adam), followed by Eve's rounded bottom, usually not reaching below the Adam's low.
There's also a confluence of at least three more bullish factors:
1. RSI in the oversold range;
2. RSI divergence suggesting price bottoming;
3. Price sitting above weekly support level (not shown in the chart, zoom out to see).
Expected price action in the coming days is shown in the chart, with 1st target range shown in green. However, if the pattern fails and weekly support breaks, a drop to the lower range of weekly support is expected (about 15% lower), and if that breaks there's a long way down to the next one.
Feedback and comments are very welcome. Safe trading!
Disclaimer:
This is not intended as financial advice, trading is your sole responsibility, please do your own research.
There's also a confluence of at least three more bullish factors:
1. RSI in the oversold range;
2. RSI divergence suggesting price bottoming;
3. Price sitting above weekly support level (not shown in the chart, zoom out to see).
Expected price action in the coming days is shown in the chart, with 1st target range shown in green. However, if the pattern fails and weekly support breaks, a drop to the lower range of weekly support is expected (about 15% lower), and if that breaks there's a long way down to the next one.
Feedback and comments are very welcome. Safe trading!
Disclaimer:
This is not intended as financial advice, trading is your sole responsibility, please do your own research.
Comment:
Although I feared that the dump on December 6th invalidated this idea, it appears to be developing quite nicely, albeit in a bit longer duration that anticipated. Now, the crucial part is actually breaking the 0.0375 level for A&E confirmation, and then it remains to be seen how the price reacts at the next resistance around 0.04.
Comment:
Target/resistance around 0.04 was reached as predicted and the price was rejected from it (also expected). For this A&E pattern to remain valid, the price should find support at 0.0365, although a drop to 0.034 would not be too surprising either. If it stays above those levels, more upside is to be expected.