Consolidation holding around long-term trendline (solid purple). The following are a few scenarios that could occur (best to worst):
1. Price re-flips long-term trendline and follows 'bottom' route. Key indication could be around 2800-2900 where 200EMA (H4) looks to intersect pattern. A break at 200EMA could be the needed push to get past 3k critical resistance. I believe this is still viable because we didn't break back below 2600 {2/22}, thus just generating a low off the current pattern and LT trendline (solid red).
2. If price gets rejected at LT trendline we could setup to follow the bullish bat pattern. Reversal is expected around 2300 and SL around 2k critical support which makes this seem a bit more viable. This is my first time using these patterns so I'm still a bit hesitant on the overall accuracy but the concept seems pretty straightforward.
3. Price gets rejected at LT trendline and goes straight down (not towards bat pattern). As explained at the start of the year {1/01}, the growth of
ETH, and the crypto market in general, has been quite substantial which puts us in a situation where we can undoubtedly continue a bearish market cycle.
As I'm typing this post, I find myself leaning more towards the third scenario as I believe the break from the original long-term cycle (not shown) created a new cycle which has still not run it's full course. This would align economically as well. That said, I do believe the market continues to scale and real-world adaptation is becoming more conceptualized. This has it's cons but, in general, gives a 'we're early' vibe.
1. Price re-flips long-term trendline and follows 'bottom' route. Key indication could be around 2800-2900 where 200EMA (H4) looks to intersect pattern. A break at 200EMA could be the needed push to get past 3k critical resistance. I believe this is still viable because we didn't break back below 2600 {2/22}, thus just generating a low off the current pattern and LT trendline (solid red).
2. If price gets rejected at LT trendline we could setup to follow the bullish bat pattern. Reversal is expected around 2300 and SL around 2k critical support which makes this seem a bit more viable. This is my first time using these patterns so I'm still a bit hesitant on the overall accuracy but the concept seems pretty straightforward.
3. Price gets rejected at LT trendline and goes straight down (not towards bat pattern). As explained at the start of the year {1/01}, the growth of
ETH, and the crypto market in general, has been quite substantial which puts us in a situation where we can undoubtedly continue a bearish market cycle. As I'm typing this post, I find myself leaning more towards the third scenario as I believe the break from the original long-term cycle (not shown) created a new cycle which has still not run it's full course. This would align economically as well. That said, I do believe the market continues to scale and real-world adaptation is becoming more conceptualized. This has it's cons but, in general, gives a 'we're early' vibe.
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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.