Bigger bearish symmetrical triangle formed - signals to watch
The current scenario:
1. Market structure: price action previously broke out of a symmetrical triangle with the measured target to be about 1.6 USD (see my previous posts) but have failed to reach the target. After being rejected by the 6HR 50 moving average, price action has gone to as low as 1.18 and now formed a bigger bearish symmetrical triangle. The upside measured target from the apex of this symmetrical triangle is about 1.65 and the downside measured target is at about 0.87. It is also important to note that we starting this week's candle under the 21 moving average and the immediate support we have is the 3D 50 moving average. Breaking below the 3D 50 moving average will be a BAD sign so I would watch this level.
2. BTC dominance is currently reversing back up to about 60% and is at the 6HR 21 and 50 moving average. If this does not get rejected at those moving averages, more upside on BTC.D will mean altcoins are going to take a further hit overall. So it is very important to watch where BTC.D trends in my opinion.
3. RSI: there is currently bullish divergence on the hourly chart, let's see if this plays out and starts an upswing to the upper trend line of this triangle.
The bullish case:
1. The 6HR 50 moving average, which was the previous resistance is now coming down and currently sitting at about 1.3. If we get price action above this moving average, it is a good sign for the bulls as the next moving average that will act as resistance is the daily 21 moving average currently at about 1.42.
The bearish case:
1. The 3D candle closes below the 3D 50 moving average as that has been the support since the dump.
* These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.
1. Market structure: price action previously broke out of a symmetrical triangle with the measured target to be about 1.6 USD (see my previous posts) but have failed to reach the target. After being rejected by the 6HR 50 moving average, price action has gone to as low as 1.18 and now formed a bigger bearish symmetrical triangle. The upside measured target from the apex of this symmetrical triangle is about 1.65 and the downside measured target is at about 0.87. It is also important to note that we starting this week's candle under the 21 moving average and the immediate support we have is the 3D 50 moving average. Breaking below the 3D 50 moving average will be a BAD sign so I would watch this level.
2. BTC dominance is currently reversing back up to about 60% and is at the 6HR 21 and 50 moving average. If this does not get rejected at those moving averages, more upside on BTC.D will mean altcoins are going to take a further hit overall. So it is very important to watch where BTC.D trends in my opinion.
3. RSI: there is currently bullish divergence on the hourly chart, let's see if this plays out and starts an upswing to the upper trend line of this triangle.
The bullish case:
1. The 6HR 50 moving average, which was the previous resistance is now coming down and currently sitting at about 1.3. If we get price action above this moving average, it is a good sign for the bulls as the next moving average that will act as resistance is the daily 21 moving average currently at about 1.42.
The bearish case:
1. The 3D candle closes below the 3D 50 moving average as that has been the support since the dump.
* These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.