Hello Crypto Friends!!
Heres some interesting charting for you.
Firstly lets start with the pattern forming-
Apart from the crazy overshoots in 2017 (fomo) and the bottom in 2018 (fear).
There seems to a be a horizontal line of resistance at which has been tested 6 times!! (7 if you count the fakeout, where it acted as support for 1 week, then broke down.
There also seems to be a nice upwards trendline of support building, which was once resistance back in 2018, and when we finally got above it......big green candle!!. This line was tested at the end of 2019.
Now, the interesting part:
Using Fibonacci -
On Logarithmic scale, when we topped out last year, we actually hit the .786 fib. Because this fib was drawn from top to bottom, this indicates extreme greed!
Now check out the .618 Golden Pocket. Acted as support forever in 2019, and we have come up and tested it twice after the break down!!
Next-
From bottom to top. Notice we came down to the 0.5 fib, a lot of people were expecting the $5.5k level, which incidentally is the .618. However, the buyers have stepped in early. A 0.5 retrace is showing some greed still exists in the market.
By the way that is how ascending triangles are formed, the buyers stepping in earlier each time the price falls whilst the sellers keep a flat price along the top.
Next-
Top to bottom, look where the retrace just hit. Perfect .618
Now guess what i'm going to show you?!-
Look what is lining up with our trend line!!
I will update this post as time presses on. Lets see how this pattern plays out. Oh, i almost forgot to show the target for this pattern!
To get the measured move i took off log scale, its not necessary but i like to so that the measurement doesn't look so small.
I have done, 2 measured moves. One is a conservative marked in green, most likely to happen if the pattern breaks early. The second in light blue if the pattern breaks later.
I also added some Fibonacci extensions.....
Keep an eye out for updates!!
I will update BTC and Chainlink tommorow.
Happy Trading!!
