New pattern: ballistic curve. Bearish?Bitcoin seems to be forming a perfect ballistic curve! While there is officially no such pattern recognized in trading (not that I know of), it is very interesting to look at the "physics" behind it. How does ballistic curve form?
Ballistic curve normally forms when an object is shot with a certain velocity, in the gravity field*. It gets momentum upwards only at the moment it is shot; then it only continues up due to inertia, not being fed any more The momentum downwards hovewer, is operating constantly - it is the gravity force. It constantly diminishes the upward movement, and it turns it to downward.
What does it mean in the trading chart? While trading and physics are different, the principles behind forming the pattern are very likely similar. We could say that the bulls got the energy ONLY at the time of the bounce, and then the energy gets diminshed constantly by bears, who work as a gravity. Who wins? There might be more bounces, but everything finally falls down in the gravity field :-) Bulls are only fed by bounces, while bears are the constant force of the market. Seems like bears have the advantage.
Furthermore, the ballistic curve can be also viewed as inverted cup and handle, which is also bearish.
What do you think?
*) stupid TV automatically recognized "gravity" as an asset, please ignore this, I just mean normal gravity (oh shit, it did it here too... you know what I mean :-))
