All indications seem to suggest that the ship is about to sink once again and, in terms of percentage point drop, this time will be bigger than the last. Even though it hasn't felt like it, ADX shows our negative trend is still very much intact. The recoil from the last drop has neutralized it up to this point but I anticipate it is about to turn.
A couple of observations:
1) I've seen the neckline of the inverted head and shoulders drawn improperly on most charts. The proper neckline is drawn from the lowest point of the left shoulder to the highest point of the right shoulder. Most people have the neckline drawn across the two shoulders. Drawing it this way turns it into a descending neckline. Drawn properly, it is an ascending neckline and if the inverted head and shoulders came true we would not experience the breakout until we are past 10k.
2) This has been a market crash versus a correction. People have a perception that we will rocket back up to 15k. At some point, we will experience a short-lived breakout; however, we will not have hit bottom until the market has spent some time probing around at whatever level that ends up being. The recovery will not occur as a bounce. It will be a healthy growth that steadily builds itself back up from the bottom.
Note: This analysis is still premature and I would recommend sitting on the sidelines until further confirmation. In the long run, patience will pay off and keep you from losing money.
A couple of observations:
1) I've seen the neckline of the inverted head and shoulders drawn improperly on most charts. The proper neckline is drawn from the lowest point of the left shoulder to the highest point of the right shoulder. Most people have the neckline drawn across the two shoulders. Drawing it this way turns it into a descending neckline. Drawn properly, it is an ascending neckline and if the inverted head and shoulders came true we would not experience the breakout until we are past 10k.
2) This has been a market crash versus a correction. People have a perception that we will rocket back up to 15k. At some point, we will experience a short-lived breakout; however, we will not have hit bottom until the market has spent some time probing around at whatever level that ends up being. The recovery will not occur as a bounce. It will be a healthy growth that steadily builds itself back up from the bottom.
Note: This analysis is still premature and I would recommend sitting on the sidelines until further confirmation. In the long run, patience will pay off and keep you from losing money.
Comment:
Trade invalidated. Bitcoin looks like it may begin to breakout :)