HTF Double Bottom
Updated
We've experienced a lot of bearish pressure due to the Russia and regulation FUD recently.
I am aware that SOL has formed something of a H&S pattern (neckline in pink). As many of you are aware this is a trend reversal pattern often found at tops. Because this likely is not a top I don't think it will play out as such. The neckline was protected nicely. What I've got my eye on now is the double bottom we have formed.
From 24 Jan up to current we have experienced decreasing volume that has formed a downtrend in a consolidation phase over that span. I'm looking for volume to break that downtrend and send price to the upside in the coming days - likely early next week as the market recovers from the fud reaction.
PT - between $154-147.
I am aware that SOL has formed something of a H&S pattern (neckline in pink). As many of you are aware this is a trend reversal pattern often found at tops. Because this likely is not a top I don't think it will play out as such. The neckline was protected nicely. What I've got my eye on now is the double bottom we have formed.
From 24 Jan up to current we have experienced decreasing volume that has formed a downtrend in a consolidation phase over that span. I'm looking for volume to break that downtrend and send price to the upside in the coming days - likely early next week as the market recovers from the fud reaction.
PT - between $154-147.
Note
BTC had a bearish breakdown which caused SOL to break through the H&S neckline mentioned above. Currently, price is reacting to .618 fib extension level. Structurally, the double bottom setup mentioned in the original TA is still valid.
Note
Some nice bullish pressure entered off the .618 extension with a nice pull to the upside. Price is currently rejecting a previously untapped daily resistance level. Would like to see some sideways action for the next few hours.
Note: BTC has a CME gap around 40k so we could start seeing some rotation to the upside as the weekly comes to a close.
Note
After rejecting the previously untapped daily level at $93, price pulled back to the .382 fib retracement level and pushed above said daily level on volume. Next key level of resistance in terms of liquidity will be $101.94.
Bitcoin looks like its getting quite a bit of buy pressure on hopes of Ukraine tensions easin, which will help push SOL higher in the coming days.
Note
The Russia/Ukraine fiasco threw a wrench into this TA yesterday. However we got a very strong reaction off a high term daily liquidity level to the upside. As you can see in the chart we have now made a break in the downtrend that was formed on volume, a bullish indication. Eyes on BTC to see if some bullish structure establishes and this move can continue.
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.