The overall pattern we have formed is a Falling Wedge (Just like BTC) this gives me some hope that the bear cycle is soon coming to an end however not without more downside along the way and some testing of key support levels. We've been pushed down by both the 200EMA and the 0.5 Fib-Extension giving off a strong rejection off these levels. This has lead to a pullback and a retest of the 0.618 Fib-Extension, here was a crucial that we close above this level to give us a good chance of being able to break out of this wedge unfortunately though we were unable to do so which resulted in another rejection and pull back to our current level where we are currently fighting to break and close above it. If we happen to close above this level then we stand a very good chance of breaking out of this wedge but if we don't (more likely) then we will be testing the $691-$700 area in which I expect a very strong bounce and a testing of the upper trend line with a hopeful break.
We have a clear bullish divergence which I won't expect to be played out until we have reached the key area of $690-$700 in which then we will see the Falling Wedge pattern broken and hopefully some key resistance levels.
Was trying to replicate this and realized you’re not using a log chart… Any reason for this? Curious as I always use log especially over over longer timeframes. Would be interested in learning if you don’t mind explaining? Thanks
lazerman
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Not sure if that’s divergence as the RSI has moved up, and the price is also above where it was at the last RSI trough. Divergence generally refers to differing signals (RSI going down, price flat/up; RSI going up, price flat/down)… Overall one of the better posts on here tho, thanks for sharing
Tradersweekly
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Thank you for sharing. My current price target is at 1000 USD and then at 900 USD.
BearPiggy
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@Tradersweekly, Thank you. 1000USD seems like a strong support level aswell it will be exciting to see what happens there.