LINK/BTC has come to completion of the bearish Butterfly pattern after 472 days, now we are on the move to targets, respectively green bookmarked lines on chart.
It doesn't mean won't swing, it just means we are going to first target without making new highs again, don't be a believer! #short
There's also some bearish divergence and bearish hidden divergence on RSI , so down and continuation of downside.
We could expect a bounce reaching first target since it's also strong support between first and second target we will most definitely bounce. 0.38 and B point of the pattern (conservative target).
Other targets are 0.618 fib level and point A (this last one I really doubt we'll meet, maybe next year :)
Very interesting this butterfly. I was following your post and have the following question. Yesterday it did made a higher high before coming a bit down.
Second question; where do you see (how can i recognize) the bearish (hidden) divergence.
1) Top rectangular box was the limit of butterfly pattern, we never got there, simple came back up and made a double top to confirm downside, IMO due to unawareness of the pattern, fomo or fundamentals or simply to mark the 3rd point of bearish divergence.
We now have completed TP1 of this pattern, respectively the 0.382 fibo. It could be complete or we can come further down to 0.618 which is strong TP2 - it can take time or we're simply done.
2) The bearish divergence is simple and seen on daily, price was making higher highs and RSI was making higher lows, it was obvious.
The hidden bullish divergence is more difficult and normally spotted on downtrend. I did notice some kind of hidden bearish divergence, in lower time frames but was and I'm still not sure: Hidden bearish divergence - when PA (Price Action) makes higher lows and RSI higher highs.
We do have now a massive hidden bullish divergence and thus we went up already: Hidden bullish divergence - when PA makes higher low and a lower low on RSI.
Do PM I can give you link to elucidative video or notes to those kind of divergences.
Cheers
see_are_em
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I like the analysis. However, the fundamentals will play an important role in coming weeks. This week is the talk with former Docusign CEO and founder Tom Gonser. Additionally, there is the IC3 Winter Retreat (initc3.org/events/2019-02-14-IC3-Winter-Retreat.html). Huge industry recognition (the likes of Intel, IBM, Siemens, Fidelity Assets and more) may skyrocket this coin soon.
Jnsane
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@CoinRepoMan, Thanks for the feedback it's good to know and this actual bullish hidden divergence does agree with you very much!
Second question; where do you see (how can i recognize) the bearish (hidden) divergence.