Well the sideways consolidation has continued longer than any would have anticipated. Long enough to deflate all but the most ardent bulls, perhaps. Certainly casual investors who have bought in since March would be demoralised by this activity. If only they new that this was precisely the effect intended by the money powers to support their accumulation. At least so says Mr Wyckoff.
Technically, we can see that the extended consolidation has been within the trading range defined by a symmetrical triangle, which is typically a formation that projects continuation of the prior trend, which is down.
Looking at the BTC chart in the 4 hour time frame, and we see that the support line of the triangle formation has been breached twice in the past two days, demonstrating little bullish appetite to rise to new highs at the moment. The perfect moment for a Bear to pounce! Further, you will notice that the 20MA is crossing the 50MA to the downside, which is itself on a downward slope, and the 20MA has switched from offering support to providing resistance.
So, there looks to be substantial weakness still and a break below the support of the Triangle could see a rapid tumble to a lower low. I anticipate this to be at least as low as $28.8k and probably down to $26. However, I note that if one projects the height of the Triangle from a potential break of the support line, you will land on, or near $23k.
But first, for any of these targets to come into focus, price must break and hold below the current line of support.
One thing nobody should do at the moment is look at the weekly chart and ponder the implications of the Bearish Pennant formation! Avert your eyes now...
Technically, we can see that the extended consolidation has been within the trading range defined by a symmetrical triangle, which is typically a formation that projects continuation of the prior trend, which is down.
Looking at the BTC chart in the 4 hour time frame, and we see that the support line of the triangle formation has been breached twice in the past two days, demonstrating little bullish appetite to rise to new highs at the moment. The perfect moment for a Bear to pounce! Further, you will notice that the 20MA is crossing the 50MA to the downside, which is itself on a downward slope, and the 20MA has switched from offering support to providing resistance.
So, there looks to be substantial weakness still and a break below the support of the Triangle could see a rapid tumble to a lower low. I anticipate this to be at least as low as $28.8k and probably down to $26. However, I note that if one projects the height of the Triangle from a potential break of the support line, you will land on, or near $23k.
But first, for any of these targets to come into focus, price must break and hold below the current line of support.
One thing nobody should do at the moment is look at the weekly chart and ponder the implications of the Bearish Pennant formation! Avert your eyes now...
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