End of the Alt bear market already, inverse H&S for ADA?
Updated
Alts have made some good jumps up the past week, many of them have been showing high volume during these rallies, which is a very good sign. My previous analysis we made that good rally to break that 0.07 resistance. After the weird trap move Bitcoin -0.70% made, it dropped a bit but very quickly started a second wave up again with high volume . The ones who have been reading my Bitcoin -0.70% analysis lately know that i am still bullish on the market (without ignoring bearish signs of course). I think we will keep seeing some sideways price action this weekend, but hopefully we see some real movement after the weekend.
Assuming Bitcoin -0.70% goes sideways, we want to see stable movement from the alts in general, they can drop a bit, but no big drops. I know there is still allot of risk here, but waiting for the blue entry zone, scaling in with a small position in the blue zone and waiting for a turn to the upside to increase the position. This is the kind of trade, that IF it works out, you want to risk a little bit here and make the position on the way up while risking profit, not risking your capital. There is a chance, that if bitcoin -0.70% goes above the 7000, that ADA can make a good break of this bull flag and make a strong rally towards the 0.11. If it is able to do that, we will get to see a V shape low for ADA , which will then be the start of a big inverse H&S .
Assuming Bitcoin -0.70% goes sideways, we want to see stable movement from the alts in general, they can drop a bit, but no big drops. I know there is still allot of risk here, but waiting for the blue entry zone, scaling in with a small position in the blue zone and waiting for a turn to the upside to increase the position. This is the kind of trade, that IF it works out, you want to risk a little bit here and make the position on the way up while risking profit, not risking your capital. There is a chance, that if bitcoin -0.70% goes above the 7000, that ADA can make a good break of this bull flag and make a strong rally towards the 0.11. If it is able to do that, we will get to see a V shape low for ADA , which will then be the start of a big inverse H&S .
Note
Previous analysis:
Note
ADA was looking very strong until the market dropped again. It even broke the resistance with high volume (yellow circles), but the market pulled this one down with it. But, ADA has not dropped as much as most of the Alts, still way above the low and even above that previous heavy resistance around 0.07. The high volume on the low and even bigger volume during the move up, shows that there were allot of buyers around these levels. The inverse H&S is still possible, but it would mean we need to see a move up this week again. On the left we see a small wedge, showing potentially the low for now. On the right we see a very big wedge, indicating a long term low even. The volume at the break out, doesn't get any better than this. So the only thing that can destroy this strong movement, is Bitcoin, otherwise it would be a slam dunk! But it's clearly not, because the breakout should have already happened at that yellow circle according to the volume. This shows us, there are more factors in play.
That H&S on the left, still give a target of 0.07ish. So 2 options, either this small wedge on the left is a fake one and we move towards that yellow circle first. If this wedge is valid, and we move up from here, that would be a very strong sign. Because it would show the bull are very eager to buy this one up.
The volume of this break out of the small wedge is low, so it's not confirming the wedge yet.
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