Still Think That's Not A Triangle? U Can't C Me! BITCOIN! (BTC)
Welcome friends and haters alike — to this spectacular analysis, brought to you by the often imitated, never duplicated, legendary wizard of the markets! Let's jump right in! Looking at the four hour chart for Bitcoin, we can see that the chart is beginning to produce the continuation breakdown that I had anticipated. The symmetrical triangle did break to the upside, but price has since rolled over, in the direction that I had originally anticipated.
Before we go any further, I've noticed that a lot of the haters out there, seem to think that formations always produce instant moves when they're completed. However, that isn't always the case. You can see on this chart, that BTC formed a huge head and shoulders pattern, at the all-time high, but then traded sideways, forming more subsequent head and shoulders patterns, before finally breaking down. When I called for downside on the original head and shoulders pattern, so many haters crawled out of the woodwork to criticize my analysis. Looking at the chart today, you can see that I was perfectly correct. The same thing is happening now. We formed a bear flag, and I called for downside, but it only dropped to form another bear flag, inside of a symmetrical triangle (which is a continuation pattern.) Obviously the correct call to make is to the downside. That doesn't mean that we will instantly get a move to the downside. You can see that we actually broke out to the upside, but that move failed, and now BTC is poised to head lower. Since we know that BTC is in a downtrend channel, and we've had a succession of bearish patterns and continuation patterns during a downtrend, I'm going to keep the call simple. I'm going to break it down in layman's terms for you, and type it real, real, s-l-o-w.
We are in a downtrend channel. This is a bear market. The formations produced, suggest a continuation to the downside, potentially to my bear flag target. No matter what happens going forward, as long as BTC stays between those pretty pink trendlines, this market is headed lower. Was that simple enough?
Initial downside support rests at each low point formed inside of the symmetrical triangle. Below the low formed on the 17th, the next support level would be at the 78.6% retrace. On the upside, the 50 EMA (in orange,) should obviously continue to act as the ceiling in this market.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Before we go any further, I've noticed that a lot of the haters out there, seem to think that formations always produce instant moves when they're completed. However, that isn't always the case. You can see on this chart, that BTC formed a huge head and shoulders pattern, at the all-time high, but then traded sideways, forming more subsequent head and shoulders patterns, before finally breaking down. When I called for downside on the original head and shoulders pattern, so many haters crawled out of the woodwork to criticize my analysis. Looking at the chart today, you can see that I was perfectly correct. The same thing is happening now. We formed a bear flag, and I called for downside, but it only dropped to form another bear flag, inside of a symmetrical triangle (which is a continuation pattern.) Obviously the correct call to make is to the downside. That doesn't mean that we will instantly get a move to the downside. You can see that we actually broke out to the upside, but that move failed, and now BTC is poised to head lower. Since we know that BTC is in a downtrend channel, and we've had a succession of bearish patterns and continuation patterns during a downtrend, I'm going to keep the call simple. I'm going to break it down in layman's terms for you, and type it real, real, s-l-o-w.
We are in a downtrend channel. This is a bear market. The formations produced, suggest a continuation to the downside, potentially to my bear flag target. No matter what happens going forward, as long as BTC stays between those pretty pink trendlines, this market is headed lower. Was that simple enough?
Initial downside support rests at each low point formed inside of the symmetrical triangle. Below the low formed on the 17th, the next support level would be at the 78.6% retrace. On the upside, the 50 EMA (in orange,) should obviously continue to act as the ceiling in this market.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-