Heading Towards Capitulation?
Updated
I used capitulation in the title because it does appear that will be the objective of this correction. Big brother seems to be content on bring the most pain to the retail investor that bought at $2 or higher. In addition, they know that everyone is buying the dips and averaging down and will try to squeeze every penny from you. Everything is indicating that there is still at least one more major drop and there could be more based on historical price action. Summer is just about here and BTC is always bearish during the summer , until beginning of August. I will post when i see a bottom. Keep thing is perspective and tamper your expectations.
Comment
The three charts are examples that meet the requirements of a trend line. I personally do not trade patterns as much as use them as part of the tool kit. Support and resistance are by far more important then shapes. In most cases trend lines will intersect with key points on resistance and support zones. The combination of trend lines, resistance and support and using the Phoenix, provides high probability trades. There is no right or wrong way but only what provides the most information to make sound decisions concerning risk to reward.As to assumption, I'm only going with the facts and the information I have from past and present, which is indicating the bearish trend/cycle will most likely persist. When bullish information presents itself on the chart I will respond accordantly. I try not to speculate, instead I develop a plan based on the information provided on the charts.
One point about flags; they are momentum structures and last no more then 3 weeks and any thing beyond that time frame is a channel or other long term trend. A good source of information is thepatternsite.com
Finally, this is a space to learn and grow as investors and traders and input is welcomed.
Comment
You have seen this before, but it has been refined based on the current information. It is possible for a 50% drop over a few days or weeks, will it happen not sure but the probability is high. Falling into the golden pocket increases the strength of the bounce and push to test ATH. It could bounce at $3 and that is good but in the end it is coming down. I have know idea if the 200 EMA is the target but it is a good one. This correction can still be considered bullish at this point.Comment
I'm aware of the inverted head and shoulders that has formed on Hive and BTC. Until that plays out fully, with confirmation, I still see a bearish trend, it could all change today or next week to a bullish reversal. Time will tell and I will adjust as required.Comment
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