CYCLICAL MOVEMENT FROM BTC ON THE MARKET!
We are currently experiencing a time of extreme bullish movement both from a fundamental and technical stand point on the long term, How ever it is important to understand why this is happening and majority of the reason the market has spiked recently is based on the fundamentals which is strongly arguable is correlated with big breakout areas from a technical point of view. Therefore those who think this movement is not sustainable due to the fact that it is based off "hype and fomo" in the market, clearly do not have a technical insight on the market or are just not doing their technicals correctly.
Majority of the time fundamental news is so correlated to the technnicals that it is almost very predictable to know when big news is going to be spread mainstream. All you need to do is wait for the breakout areas of technicals formations. In this case we were nearing a reversal signal on the BTC chart and as soon as the confluence was made clear ( in this case it was the double bottom and inverse head and shoulder.) the news hit and created enough volatility to bring in the volume needed to successfully break and reverse. This seems to be how the markets act and have been acting for a long time.
How ever i am predicting in the short term the price is going to retrace and i shall give my confluences for this, using the ADA short term chart and BTC long term (4h - 24h).
First of all I'm sure most of you are aware that the market is, and will be for some time, cyclical to the BTC chart, whether you like it or not and regardless how bullish BTC is at the moment it is important to understand that we have broken out to the bulls on a long term (crypto metric) bearish trend , and if you have any theoretically understanding of market formational structure, it will be clear that the price must have a retracement after breaking out and convert previous resistance of the trend into support in order to complete the breakout. IF this does not happen it is strongly arguable that the price will be fairly over extended and in the short term will not be sustainable and will have a retracement further down the line that is much larger and unhealthy in the short term.
Looking at ADA we are in a larger formation that is bullish which is called a microphone formation, which is a continuation formation. By using the flag pole technique the target point on this formation has both a conservative target and general target and it is honestly up to you which one is theoretically correct or not. Conservatively the first target sits at $1.41. The general target sits at $1.437.
How ever there is a bearish flag formation within the the microphone formation which predicts the price to retrace down to a very key range of support, which lines up with the potential retracement in the short term of the BTC price. this range sits between $1.235 and $1.227. IN my opinion this movement has the most confluence to back its strength, as it is still within the confines of the microphone formation which will further strengthen that move and potential short term break from it.
Thank you for your time and any criticism, advice or opinion is always welcomed, I do not offend easily as emotion when it comes to trading is never good no matter what. REMEMBER THAT!
#ADA #REVERSAL #TRENDBREAK #BULLS #NOTFINANCIALADVICE
Majority of the time fundamental news is so correlated to the technnicals that it is almost very predictable to know when big news is going to be spread mainstream. All you need to do is wait for the breakout areas of technicals formations. In this case we were nearing a reversal signal on the BTC chart and as soon as the confluence was made clear ( in this case it was the double bottom and inverse head and shoulder.) the news hit and created enough volatility to bring in the volume needed to successfully break and reverse. This seems to be how the markets act and have been acting for a long time.
How ever i am predicting in the short term the price is going to retrace and i shall give my confluences for this, using the ADA short term chart and BTC long term (4h - 24h).
First of all I'm sure most of you are aware that the market is, and will be for some time, cyclical to the BTC chart, whether you like it or not and regardless how bullish BTC is at the moment it is important to understand that we have broken out to the bulls on a long term (crypto metric) bearish trend , and if you have any theoretically understanding of market formational structure, it will be clear that the price must have a retracement after breaking out and convert previous resistance of the trend into support in order to complete the breakout. IF this does not happen it is strongly arguable that the price will be fairly over extended and in the short term will not be sustainable and will have a retracement further down the line that is much larger and unhealthy in the short term.
Looking at ADA we are in a larger formation that is bullish which is called a microphone formation, which is a continuation formation. By using the flag pole technique the target point on this formation has both a conservative target and general target and it is honestly up to you which one is theoretically correct or not. Conservatively the first target sits at $1.41. The general target sits at $1.437.
How ever there is a bearish flag formation within the the microphone formation which predicts the price to retrace down to a very key range of support, which lines up with the potential retracement in the short term of the BTC price. this range sits between $1.235 and $1.227. IN my opinion this movement has the most confluence to back its strength, as it is still within the confines of the microphone formation which will further strengthen that move and potential short term break from it.
Thank you for your time and any criticism, advice or opinion is always welcomed, I do not offend easily as emotion when it comes to trading is never good no matter what. REMEMBER THAT!
#ADA #REVERSAL #TRENDBREAK #BULLS #NOTFINANCIALADVICE
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