ARK - A Possible Reversal?
Updated
Price action broke down both the Fib support level and the main uptrend line, and since Bitcoin's price developed a strong increase in the past days this pair was going to dump as we knew the negative correlation between both. However, since November 2nd, price bounced off the last peak during July, before August's huge price increase (notice the black support line).
However, at a closer look, we can see after the bounce, a double bottom sort-of pattern formed for a reversal, and price action is currently making a rather steep ascending triangle (flat top) that are normally a reversal from bearishly-oriented markets, which this has been for almost 2 months since its peak during September. Currently testing the upper limit of the triangle, but will likely correct again towards the lower limit uptrend line and then develop upward movement from that point. If the lower limit line of the triangle is compromised, we must be careful as the possibility of it descending towards lower levels is higher than the possibility of it ascending again to the resistance line. From an indicators perspective, these need to decrease price as to reset them in order to imply upward movement, hence the approach to expect decrease to the lower limit in the near future. If there is a proper penetration of the triangle resistance, and the 50% Fib retracement level in the lower time frame, we should expect a bullish run towards 45000s and 50000s targets in the weeks to come.
Good luck!
However, at a closer look, we can see after the bounce, a double bottom sort-of pattern formed for a reversal, and price action is currently making a rather steep ascending triangle (flat top) that are normally a reversal from bearishly-oriented markets, which this has been for almost 2 months since its peak during September. Currently testing the upper limit of the triangle, but will likely correct again towards the lower limit uptrend line and then develop upward movement from that point. If the lower limit line of the triangle is compromised, we must be careful as the possibility of it descending towards lower levels is higher than the possibility of it ascending again to the resistance line. From an indicators perspective, these need to decrease price as to reset them in order to imply upward movement, hence the approach to expect decrease to the lower limit in the near future. If there is a proper penetration of the triangle resistance, and the 50% Fib retracement level in the lower time frame, we should expect a bullish run towards 45000s and 50000s targets in the weeks to come.
Good luck!
Note
After the breakout of the resistance line, an impulsive move almost reached the first target, making it correct using the previous breakout level as support and bounced off it, increasing past the 45000s target. Currently increasing, but another correction below the 50000s target is quite possible at this moment.Trade closed: target reached
If Bitcoin decreases more in the near future, Ark will continue to increase.
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