I was cleaning up my charts when I happened to notice a pattern on Bitcoin's price movement.
To top it off, the pattern coincides with certain lines in the Fibonnaci channel I charted for you all last week.
You'll see that the RSI lines up pretty well with the fractal as well.
In addition to that, my major resistance line has been convincingly broken (pink line).
So I'll be entering a long here (~$11,450) with a tight stop loss ($10,900)
I will take some profits at top of the channel, depending on any relevant fundamentals. But I do expect this next play to be a break out of the channel / flag.
I think the fractal play is detailed pretty well in the chart, but I'll explain it anyways for those that like detail.
The FIB channel is "upside-down" because this is downward price action (FIB level 0 is top, level 1 is the bottom), and that's how FIB channels work.
Step-by-Step. Fractals are patterns or price-action that repeats.
1) Bottom of channel
2) Travel back up to around 0.382 level
3) Correction down to 0.786 level
4) Travel up to return to top of channel (0 level)
As always, please feel free to ask questions. Hope this analysis helps!
To top it off, the pattern coincides with certain lines in the Fibonnaci channel I charted for you all last week.
You'll see that the RSI lines up pretty well with the fractal as well.
In addition to that, my major resistance line has been convincingly broken (pink line).
So I'll be entering a long here (~$11,450) with a tight stop loss ($10,900)
I will take some profits at top of the channel, depending on any relevant fundamentals. But I do expect this next play to be a break out of the channel / flag.
I think the fractal play is detailed pretty well in the chart, but I'll explain it anyways for those that like detail.
The FIB channel is "upside-down" because this is downward price action (FIB level 0 is top, level 1 is the bottom), and that's how FIB channels work.
Step-by-Step. Fractals are patterns or price-action that repeats.
1) Bottom of channel
2) Travel back up to around 0.382 level
3) Correction down to 0.786 level
4) Travel up to return to top of channel (0 level)
As always, please feel free to ask questions. Hope this analysis helps!
Also, I think it's easier to follow visually. Like a Sesame Street Version.