The double bottom scenario!
As I was doing some restructuring of my previous lines on the chart i came across a slight switch up of future direction in the medium term. Based on my time adjusting my BTC chart i have been pushed slightly more to the bullish side based on both technicals and fundamentals which have arisen, and are slowly shifting the narrative over the markets.
My reasoning will be discussed blow in terms expressed simply for those who are new but technical enough to be applicable to those of a experienced background on markets.
1) Flag formation (neutral): although the flagpole originates from a bearish direction the flag is seen as a downward trending slope. Therefore technically it can be argued that the formation can both be interpreted as bullish or bearish, depending on the signals being created within the flag. I shall be explaining why my view is more bullish than bearish in my opinion.
2) Double bottom (bullish): This formation is known widely as being a bullish sign or bearish if it is inversive. This formation is more powerful based on that fact that it also forms a bottom for the flag formation increasing the likely hood that it will reverse. Although the neckline of the formation cuts through the Golden pocket of the fib retracement which will act as strong resistance for price to break through. If price breaks this area it will be seen as an additional point of confluence. Thereafter there is not much resistance between the Golden pocket (GP) and the Target point (TP) which sits at the 38.8k mark.
My medium term prediction for the the price based on the fact that the technicals are looking good as well as the narrative is beginning to shift, should be around
41K, which is labeled as the 50% fib level. Although this may look easy to achieve, it surely wont as the bulls would have to step up to break above the strong resistance levels that lie ahead of the 40k mark.
NB: Be advised that all technical indicators and formations expressed are based on my personal opinion and limited knowledge in the field of technical analysis. Don't base any trade off my opinions but rather take it as a perspective upon your own research and analysis.
Thank you for reading up until this point of the article. All likes and comments would be much appreciated, and if you have any thoughts on this article feel free to express your opinion whether it is good or bad.
#notfinancialadvise #tradingview
My reasoning will be discussed blow in terms expressed simply for those who are new but technical enough to be applicable to those of a experienced background on markets.
1) Flag formation (neutral): although the flagpole originates from a bearish direction the flag is seen as a downward trending slope. Therefore technically it can be argued that the formation can both be interpreted as bullish or bearish, depending on the signals being created within the flag. I shall be explaining why my view is more bullish than bearish in my opinion.
2) Double bottom (bullish): This formation is known widely as being a bullish sign or bearish if it is inversive. This formation is more powerful based on that fact that it also forms a bottom for the flag formation increasing the likely hood that it will reverse. Although the neckline of the formation cuts through the Golden pocket of the fib retracement which will act as strong resistance for price to break through. If price breaks this area it will be seen as an additional point of confluence. Thereafter there is not much resistance between the Golden pocket (GP) and the Target point (TP) which sits at the 38.8k mark.
My medium term prediction for the the price based on the fact that the technicals are looking good as well as the narrative is beginning to shift, should be around
41K, which is labeled as the 50% fib level. Although this may look easy to achieve, it surely wont as the bulls would have to step up to break above the strong resistance levels that lie ahead of the 40k mark. NB: Be advised that all technical indicators and formations expressed are based on my personal opinion and limited knowledge in the field of technical analysis. Don't base any trade off my opinions but rather take it as a perspective upon your own research and analysis.
Thank you for reading up until this point of the article. All likes and comments would be much appreciated, and if you have any thoughts on this article feel free to express your opinion whether it is good or bad.
#notfinancialadvise #tradingview
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