The pattern does not look ideal as the move A-C should have been 0.382 or 0.886 retracement of the A-B. Nevertheless completion of the butterfly suggests a possible bullish rally. 0.011 area has been a short-term supportive trendline but has eventually been broken and is currently representing the area of interest that can potentially be retested within two days. There should be a slightly higher price move in order to break the key resistance level that corresponds to 0.786 retracement level from the previous high 0.0145 on feb, 15.
However the note should be taken. The market (and the volume) is 95% made-up on both kraken and poloniex. In monday I noticed the person responsible for market-making was tossing 400 btc sell orders between 0.016 - 0.014 but seemingly ended up with 0.014 and 0.0148, the first one, as always, got self-bought and the second one got self-bought partially, followed by a sharp decline as the market-maker after not a much ponderation rode the price back down. Someone did buy into the second wall thinking it will disappear but that didnt happen. Had it happened, the C would have reached 0.0156 making the buttrefly look a bit more traditional as the A-C would have been 0.85. But for some reason they made it 0.0145.
If the price breaks 0.011 and stays above 0.0115 until feb, 19 it will form a distinct bullish 1d engulfing candle suggesting a significantly higher upward movement. If the breakout is prone to succeed the price will be propped up and may touch 1450, but the constructive volume action is imperative.
However the note should be taken. The market (and the volume) is 95% made-up on both kraken and poloniex. In monday I noticed the person responsible for market-making was tossing 400 btc sell orders between 0.016 - 0.014 but seemingly ended up with 0.014 and 0.0148, the first one, as always, got self-bought and the second one got self-bought partially, followed by a sharp decline as the market-maker after not a much ponderation rode the price back down. Someone did buy into the second wall thinking it will disappear but that didnt happen. Had it happened, the C would have reached 0.0156 making the buttrefly look a bit more traditional as the A-C would have been 0.85. But for some reason they made it 0.0145.
If the price breaks 0.011 and stays above 0.0115 until feb, 19 it will form a distinct bullish 1d engulfing candle suggesting a significantly higher upward movement. If the breakout is prone to succeed the price will be propped up and may touch 1450, but the constructive volume action is imperative.