The double top scenario isn't realistic, the price meeting target (usually around 60% of the move from the top) wouldn't be able to be met from a lowest valley at 134. There is simply not enough room to the downside for that scenario.
The cup and handle is more likely, PA has made an handle with a retracement of a third of the advance or 0.382. And the handle has now been developing for more than a week. Rules are respected.
This fib level seem to also match the behavior of a wave 4. In price territory of the wave (iv) of lower degree.
Additionally the parallel channel from top 1-3 and bottom 2-4? is still intact.
A breach of that blue TL would be an instant invalidation of this analysis !
Wave 3 extended perfectly to 1.618 of wave 1 from the bottom of wave 2.
On an other chart, ETHBTC, has met a triple bottom, and now look bullish. A break bellow 0.068 over there would also be instantly bearish.
MACD has reach a level similar to the one at the bottom at 134. Often common with a sharp wave 4.
On H4 RSI is making higher low
When momentum return to neutral, this would be a long signal.
It would be corresponding to a break above the doted black line. If PA closes above it would act as support, it is currently the main resistance.
It is still possible for PA to make a new low, and a flash crash toward 274 isn't excluded and wouldn't necessarily be invalidating as long as the candle closes above the TL.
The cup and handle is more likely, PA has made an handle with a retracement of a third of the advance or 0.382. And the handle has now been developing for more than a week. Rules are respected.
This fib level seem to also match the behavior of a wave 4. In price territory of the wave (iv) of lower degree.
Additionally the parallel channel from top 1-3 and bottom 2-4? is still intact.
A breach of that blue TL would be an instant invalidation of this analysis !
Wave 3 extended perfectly to 1.618 of wave 1 from the bottom of wave 2.
On an other chart, ETHBTC, has met a triple bottom, and now look bullish. A break bellow 0.068 over there would also be instantly bearish.
MACD has reach a level similar to the one at the bottom at 134. Often common with a sharp wave 4.
On H4 RSI is making higher low
When momentum return to neutral, this would be a long signal.
It would be corresponding to a break above the doted black line. If PA closes above it would act as support, it is currently the main resistance.
It is still possible for PA to make a new low, and a flash crash toward 274 isn't excluded and wouldn't necessarily be invalidating as long as the candle closes above the TL.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.