Axelar: The Bottom Is In? Common Sense Technical AnalysisCan we say that the bottom is in?
In this chart, AXLBTC, we can see a consolidation pattern (sideways) after strong bearish action. The fact that prices go flat after a strong bearish wave tells us that the bearish wave is no longer viable. It tells us that the bearish wave is over.
Now, a bearish wave ending doesn't necessarily lead to a bull-market, there can be consolidation followed by a new bearish wave. This is when the market cycle and marketwide action becomes important.
A conventional market analyst would be quick to tell you that this consolidation pattern, the sideways channel, is a neutral pattern and it can break to either side, up or down, and this is true. But we are looking at other charts as well, hundreds of them and many already broke bullish. Since the market is interrelated; what one does, the rest follows, we know that the probabilities lean toward the bullish side.
We know that Cryptocurrency goes bullish every four years. There are bullish and bearish waves all of the time, regardless of the main global-trend, but still there is a main trend and this one becomes ultra-bullish every four years. We know this, the cycle and we also know about marketwide action and this makes it much easier to predict how the consolidation pattern will break.
The bearish wave (orange) ends and price action goes flat. This flat action is showing some bullish tendencies, we expect a bullish wave to happen next.
This is technical analysis mixed with common sense.
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