$BTC Bullish Consolidation / Cypher
A litle cluttered here but i tried to cram as much as i could into this chart data wise, and also to give possible targets if we do in fact bottom here even for a corrective move like this.
Just an idea, if we do bottom here we have a lot of room to correct bullishly without really putting the overall trend in jeopardy.
I think we can stay under the yellow supply line as high as about 28-30k
All 3 waves of the ABC correction from Novembers high have completed and diverged, including where we have bottomed.
You can see the massive volume gap from here to 28k, and the large amount of volume we have underneath us as support.
A .786 retracement would give us the Bearish Cypher would also fill that upper volume gap, but we have plenty of notable areas between here and there.
I drew the falling wedge on there because if we did get a sharp move back into that trend, a breakout of the supply line is confluent with the idea of the Bearish Cypher
Money flow has bullishly diverged twice, and is often an early, and statistically better way of locating a major divergence, in my experience.
RSI has also diverged locally a bit, but we would want to see a larger drive to really feel confident here.
The ADX indicates a bearish trend up top and volatility is contracting. This would imply a corrective or ABC move up. However if we bottom here, we could always see the volatility reset and then expand when the trend has flipped bullish which is indicative of an impulsive wave.
We havent backtested the next zone up from 28,800 either, which is about 37500 and nearly 100% up from here.
I also like the idea of the Bearish Cypher because that would also backtest the underside of the diagonal trend in white.
If youre a bear, that would create a lot of liquidity to really run for that downside with a continuation lower and ultimately spark a new bull cycle.
This isnt meant to be a trade setup, however if i were trading it, these zones are areas i would likely take partial profit, and reaccess if a continuation is most likely.
Just an idea, if we do bottom here we have a lot of room to correct bullishly without really putting the overall trend in jeopardy.
I think we can stay under the yellow supply line as high as about 28-30k
All 3 waves of the ABC correction from Novembers high have completed and diverged, including where we have bottomed.
You can see the massive volume gap from here to 28k, and the large amount of volume we have underneath us as support.
A .786 retracement would give us the Bearish Cypher would also fill that upper volume gap, but we have plenty of notable areas between here and there.
I drew the falling wedge on there because if we did get a sharp move back into that trend, a breakout of the supply line is confluent with the idea of the Bearish Cypher
Money flow has bullishly diverged twice, and is often an early, and statistically better way of locating a major divergence, in my experience.
RSI has also diverged locally a bit, but we would want to see a larger drive to really feel confident here.
The ADX indicates a bearish trend up top and volatility is contracting. This would imply a corrective or ABC move up. However if we bottom here, we could always see the volatility reset and then expand when the trend has flipped bullish which is indicative of an impulsive wave.
We havent backtested the next zone up from 28,800 either, which is about 37500 and nearly 100% up from here.
I also like the idea of the Bearish Cypher because that would also backtest the underside of the diagonal trend in white.
If youre a bear, that would create a lot of liquidity to really run for that downside with a continuation lower and ultimately spark a new bull cycle.
This isnt meant to be a trade setup, however if i were trading it, these zones are areas i would likely take partial profit, and reaccess if a continuation is most likely.
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