Bitcoin (BTC) technical analysis
Updated
OK, let’s delve into BTC analysis in more detail:
First of all, the major right leg has been removed so that other lines can be seen better.
The right leg of the harmonic pattern is still in progress and unfinished. Even though there was a somewhat breakout in the downtrend line, that doesn’t mean the right leg is finished or even failed, but only indicates that the right leg is going to take longer to finish. In an ideal harmonic pattern (like the minor purple one here), it takes the right leg the same amount of time to go down as the left leg goes up. Here, we have two horizontal support areas. The first one (1) is where the minor harmonic pattern would probably finish. The second one (2) is a major tick horizontal line. Even though there is a slim chance, but the major right leg could finish at the first horizontal support area (i.e. (1)). It is more probable that the right leg would finish at the second horizontal support area (i.e. (2)). Also, it is possible that after the right leg is finished, several minor harmonic patterns happen in a row. (Swipe the chart back to see something like this on the chart)
Next, let's consider time analysis. If we use the Fibonacci time tool and extend the time taken for the left leg to go up for the right leg, in a situation where the right leg would take more time, it usually ends somewhere between Fibonacci timeline 3 and 4; It rarely ends at the Fibonacci timeline 5. In this chart, the left vertical line is the Fibonacci timeline 3 and the right one is the Fibonacci timeline 4.
First of all, the major right leg has been removed so that other lines can be seen better.
The right leg of the harmonic pattern is still in progress and unfinished. Even though there was a somewhat breakout in the downtrend line, that doesn’t mean the right leg is finished or even failed, but only indicates that the right leg is going to take longer to finish. In an ideal harmonic pattern (like the minor purple one here), it takes the right leg the same amount of time to go down as the left leg goes up. Here, we have two horizontal support areas. The first one (1) is where the minor harmonic pattern would probably finish. The second one (2) is a major tick horizontal line. Even though there is a slim chance, but the major right leg could finish at the first horizontal support area (i.e. (1)). It is more probable that the right leg would finish at the second horizontal support area (i.e. (2)). Also, it is possible that after the right leg is finished, several minor harmonic patterns happen in a row. (Swipe the chart back to see something like this on the chart)
Next, let's consider time analysis. If we use the Fibonacci time tool and extend the time taken for the left leg to go up for the right leg, in a situation where the right leg would take more time, it usually ends somewhere between Fibonacci timeline 3 and 4; It rarely ends at the Fibonacci timeline 5. In this chart, the left vertical line is the Fibonacci timeline 3 and the right one is the Fibonacci timeline 4.
Comment
It went according to the analysis, precisely.TradingView
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