The key observation made was between the current pattern of December and that of late September – early October. As you see it is interesting to say the least, that the structures of the two formations have been (so far) virtually identical. Both are major consolidation / accumulation phases ( Rectangle pattern), starting with a Lower Highs trend-line (steps 1 & 2) above the 4H MA20 (red trend-line) and continuing with a rejection on that MA20 (step 3).
So far this is were we are on the current December structure. On September 30, that was followed by the third break above the 4H MA20, which presented the 1st Bullish Signal, then moved to a break above the Lower Highs trend-line (step 4) and extended quickly to a break above the 4H MA100 (green trend-line) which gave the 2nd Bullish Signal and marked the start of the complete recovery for Bitcoin (step 5). The structure was then completed by a break into the Resistance Zone and a short consolidation towards the 4H MA20 that really boosted the October rally.
How do you perceive this structure? If we are currently on step (3) we should be really looking for that third and final break above the 4H MA20 and the Lower Highs trend-line (step 4) that will basically confirm the recovery. See also how even the RSI structures are identical, with the RSI’s consolidation basically starting on step (1).
Share your thoughts on these projects at:
- Global Telegram channel: https://web.telegram.org/z/#-1794200056
- Vietnamese Telegram channel: https://web.telegram.org/z/#-1611126448
- Facebook: https://www.facebook.com/CryptoryNetwork
- Twitter: @CryptoryNetwork
DISCLAIMER: The article is not calling for investment. Every decision is yours to decide