Another short term pattern on Bitcoin. This time the chart is self explanatory.
The 1W Descending Triangle has been following a Lower High rejection pattern on the 0.786 Fibonacci retracement level. Only one time this level wasn't reached but still the 9100 1D Support held and didn't break the sequence. Proof is that on the next bottom the 0.786 retrace was easily reached. This gives the impression that on the medium term at least, until 9100 breaks, BTC is bullish.
But what about the shorter term right? Well as the title says we are on a critical turn. If the last low (9800) breaks then the 0.786 Fib pattern is maintained and we should be expecting a new Lower High (below 11000). If 11000 breaks, then this sequence is invalidated and we turn bullish. Practically the W Descending Triangle breaks into bullish territory again and should look to fill the 0.786 Lower Highs.
Where do you think this fierce consolidation will lead us to? Fill the comments section with your charts!
ETH is suddenly doing it's own thing instead of following BTC so I had a look at the history. The only other time ETH moved like this and BTC went sideways for a few days, BTC had that big correction/dump of about 20%.
jthrasher
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Great stuff as always - always pointing out the nuances most others miss. Thanks
balkoins
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Nice use of Fibs, never considered such a strategy in comparing each waves Fib climbs. Going to expirement with this!
Igor-Silva
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excellent chart!
m3fc
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Great work. Mostly I agree with your view. Thank you for sharing!