As expected the price has broken below the support trendline of the ascending wedge .
However, it is still unclear whether the bullswing from the $5755 low is an ABC structure or a 3-3-3-3-3 leading diagonal pattern.
Price is now hesitating around the .618 ret region as I am writing this.
Oscillators on many TFs are approaching oversold regions but there is still room for drop; the drops in these oversold regions are often rapid and violent.
Wedges often retrace to .786 levels so that is a region to pay close attention to if the .618 ret region does not hold. If buyers show up with high volume we can be more convinced that the recent bullswing is an actionary wave instead of an ABC correction to the upside within a broader downtrend.
A failure of buyers to defend the .786 ret levels will point to targets at low 5Ks and even 3Ks.
A successful defend from buyers will most likely result in a violent impulse to the upside that is wave 3.
However, it is still unclear whether the bullswing from the $5755 low is an ABC structure or a 3-3-3-3-3 leading diagonal pattern.
Price is now hesitating around the .618 ret region as I am writing this.
Oscillators on many TFs are approaching oversold regions but there is still room for drop; the drops in these oversold regions are often rapid and violent.
Wedges often retrace to .786 levels so that is a region to pay close attention to if the .618 ret region does not hold. If buyers show up with high volume we can be more convinced that the recent bullswing is an actionary wave instead of an ABC correction to the upside within a broader downtrend.
A failure of buyers to defend the .786 ret levels will point to targets at low 5Ks and even 3Ks.
A successful defend from buyers will most likely result in a violent impulse to the upside that is wave 3.
Note
crypto order books are more entertaining than most action moviesNote
Hourly RSI went as high as 86.
This is not the RSI you see in a downtrend. I am more and more convinced that the overall correction is over re; my WXYXZ count.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.