It's been quite choppy to the upside in this area. Price action is printing tight descending channels within a larger ascending channel.
So the bear and bull are playing a game of cat and mouse on a significant demand line and right below the 50 EMA.
The micro descending channel that is printing now within the ascending channel suggests another minor wave up and slightly above is a larger time fame supply/resistance trend line combined with the 0:0.382.
Considering we now have candles printing below the demand line of the trend up, developing an ascending channel, this looks like a cause building event for deeper retracement.
If this was a descending channel/ bullish pattern separation, this would hence continuation to the upside. But that is not the case here.
The lower 0:2.272 ratio band is significant support, paired with the 500 EMA.
When the wave down starts, get ready for some more pumps throughout the market.
- Not Financial Advice-
Note
We have reached the 2.272 retracement ratio band. I have adjusted my fib retracement pivots slightly to better catch accuracy; from the higher low that follows the previous local high, back to the local high, which catches the retracement perfectly.It appears to be a LTF bowl printing with a potential handle coming up. A high chance that we bounce to the upper 1.618 ratio band and likely beyond to eventually test the upper liquidity/supply line.
USDT.D is due for a wave up. During the previous trend up from March 24' to August 24' there were multiple deep retracements that turned into nasty bear traps (Bull Traps for the market). I believe we may be experiencing this again.
Possibly another wipe-out that could bring a lot of assets back down close to previous lows, if not beyond. So trade with caution.
-Not Financial Advice-
Note
Beware of the Dead Cat Bounce. This looks like the final market maker move to draw bears in to the trap (Bulls for BTC an alts). The September 2020 resistance is the "Big Boy on the Block" for this trend. The broadening wedge followed by a dead cat bounce is a move I see a lot, which normally ends with a solid pump shortly after. Beware Beware... Note
The Doji candle did print on the 1W chart. So, it's possible that this could turn into a morning star pattern; Where this weeks candle potentially could engulf the candle previous of the Doji. So far, the week is opening with "buying volume". And volatility is increasing. This could be a HTF pivot here.
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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.