The current situation:
1. A descending triangle pattern is now more apparent with 53% chance of breaking upwards and the measured target is about 4.45 USD from the apex. But still, note that there is still a head and shoulders formation within the triangle, which is a predominantly bearish pattern.
So far, the Fib level (gold line), 4 and 6HR 200MA have been acting as support but it was not strong enough to propel a break out to a new high. The 4HR 21MA is now approaching to the price action so in my opinion, the reaction to this moving average hitting the price action is very important since staying above the 21MA on a given timeframe is a bullish sign. The 4HR 21MA has also not been touched since the breakout back at 3.1 USD.
2. Do look out for possible bearish divergence from the last high created on the RSI, especially on the 1, 4 and 6HR harts as their last highs did create an overbought reading on the RSI.
The bullish case: price action bounces off the 21MA and breaks the triangle. An hourly close above 4.25USD would convincingly invalidate the head and shoulders pattern to me.
The bearish case: a close below the 21MA on the 4HR chart as the next level of support would be the downward-sloping 4HR 200MA currently at 3.75USD
*Thank you to those who donated, I very much appreciate it.
*Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
*These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.
1. A descending triangle pattern is now more apparent with 53% chance of breaking upwards and the measured target is about 4.45 USD from the apex. But still, note that there is still a head and shoulders formation within the triangle, which is a predominantly bearish pattern.
So far, the Fib level (gold line), 4 and 6HR 200MA have been acting as support but it was not strong enough to propel a break out to a new high. The 4HR 21MA is now approaching to the price action so in my opinion, the reaction to this moving average hitting the price action is very important since staying above the 21MA on a given timeframe is a bullish sign. The 4HR 21MA has also not been touched since the breakout back at 3.1 USD.
2. Do look out for possible bearish divergence from the last high created on the RSI, especially on the 1, 4 and 6HR harts as their last highs did create an overbought reading on the RSI.
The bullish case: price action bounces off the 21MA and breaks the triangle. An hourly close above 4.25USD would convincingly invalidate the head and shoulders pattern to me.
The bearish case: a close below the 21MA on the 4HR chart as the next level of support would be the downward-sloping 4HR 200MA currently at 3.75USD
*Thank you to those who donated, I very much appreciate it.
*Let me know in the comment section if you agree or disagree, would love to hear your ideas too.
*These are purely my speculations and not financial advice. You should always do your own due diligence before trading or investing.