Now that we've had a little bouncy correction going on for the past week or so, it looks like we have a possible pennant forming. Could this be a breakout point? Let's look at a bullish and bearish scenario for a moment.
As we know, a pennant flag can go either way. Normally they break to the down-side in a bear market. And conversely, we normally see them break to the up-side during a bull market. If we look at the overall upwardly-trending base line since the 0.20 level that I have indicated on the chart along with the downward-sloping triangle top, it is very interesting that the apex of this formation falls right on the magical 1.618 Light Red fib circle. If we are truly in the midst of a bull market, we could see a rocket launch as we get close to the apex. Take special note that the darker green trend line that has acted as "loose" resistance since September of 2018 could become a support, as we saw the bounce and breakout taking place on July the 31st at roughly 0.25. That was a definitive move that happened exactly on the line. This represents the bullish scenario, which I give the slight edge between these two scenarios.
For the bearish scenario, we would have to consider the two lower highs printed on the price line since the peak that occurred on August the 2nd at 0.325. If we are actually in a micro-bullish movement that is really occurring within a continuing bearish overall trend on the macro level, this could lend towards the possibility of a break to the down-side. BTC and most alts have printed similar lower-highs since the bullish breakout on the micro level, so we do have the possibility of seeing a market-wide correction and continuation or final completion of the bear market at that time.
With the stochastic sitting near the 50% neutral territory, we could swing either way. Overall though, I think this is a positive indication on both the bullish and bearish scenario, because a possible correction could mean the final development of the bear market IF this is the case. I still slightly tip my hat to the bullish scenario, but a break to the down-side would definitely provide an opportunity to dollar-cost-average allowing investors to "buy the dip" before the big run up comes... and I do believe that the BIG one is coming within the months of August or September.
This will certainly be fun to watch, and I feel confident about the overall market movement either way we go. It could be the last opportunity to grab a few more bags, and I'm not going to be one to cry about missing out this time. I'm ready to roll the dice and play the odds. For the first time since spring, I feel like the crypto market is ready to take a major divergence away from the stock market. Reason being, the dollar is losing value just like it did back in 2017 before the major bull run hit.
Take this lightly, and play your own game. Don't take this as financial advice from me. And keep in mind, the best way to play this is for the long term. You can't lose when you have time on your hands.
Carlton Flowers
The CryptoPro
As we know, a pennant flag can go either way. Normally they break to the down-side in a bear market. And conversely, we normally see them break to the up-side during a bull market. If we look at the overall upwardly-trending base line since the 0.20 level that I have indicated on the chart along with the downward-sloping triangle top, it is very interesting that the apex of this formation falls right on the magical 1.618 Light Red fib circle. If we are truly in the midst of a bull market, we could see a rocket launch as we get close to the apex. Take special note that the darker green trend line that has acted as "loose" resistance since September of 2018 could become a support, as we saw the bounce and breakout taking place on July the 31st at roughly 0.25. That was a definitive move that happened exactly on the line. This represents the bullish scenario, which I give the slight edge between these two scenarios.
For the bearish scenario, we would have to consider the two lower highs printed on the price line since the peak that occurred on August the 2nd at 0.325. If we are actually in a micro-bullish movement that is really occurring within a continuing bearish overall trend on the macro level, this could lend towards the possibility of a break to the down-side. BTC and most alts have printed similar lower-highs since the bullish breakout on the micro level, so we do have the possibility of seeing a market-wide correction and continuation or final completion of the bear market at that time.
With the stochastic sitting near the 50% neutral territory, we could swing either way. Overall though, I think this is a positive indication on both the bullish and bearish scenario, because a possible correction could mean the final development of the bear market IF this is the case. I still slightly tip my hat to the bullish scenario, but a break to the down-side would definitely provide an opportunity to dollar-cost-average allowing investors to "buy the dip" before the big run up comes... and I do believe that the BIG one is coming within the months of August or September.
This will certainly be fun to watch, and I feel confident about the overall market movement either way we go. It could be the last opportunity to grab a few more bags, and I'm not going to be one to cry about missing out this time. I'm ready to roll the dice and play the odds. For the first time since spring, I feel like the crypto market is ready to take a major divergence away from the stock market. Reason being, the dollar is losing value just like it did back in 2017 before the major bull run hit.
Take this lightly, and play your own game. Don't take this as financial advice from me. And keep in mind, the best way to play this is for the long term. You can't lose when you have time on your hands.
Carlton Flowers
The CryptoPro