ICON / BitcoinUpdated gained 700% profit in 1 month - insane and it's time to say bye
ICX/BTC showed insane growth rate, considering its starting price(about 1000 satoshi)
and currently it was making "ascending triangle" pattern, which is classic bullish pattern. (Pink dot line)
The ascending triangle pattern shows us that there is some kind of price wall, so the price cannot pass above that line. in our case, 8500 satoshi will be the "price wall".
So.. is it bullish? Until yesterday, Yes. There are two factors supporting this opinion.
1.Low(bottom) is continuously ascending, which means that you cannot buy that price anymore(for now)
2.Ascending triangle is one of bullish pattern.
What happened today?
The price go above to the "wall"(8500 satoshi) and tried to go further, but it didn't and came back to the price below the "wall".
should we buy now then? Absolutely NOT.
1.First of all, We can see the ascending triangle pattern if we just consider the triangle made of pink dot line. YES. It is bullish pattern, if the "price wall" is guarded well.
But in this case, the "price wall" was broken today, which means that it is not ascending triangle pattern.
Then what is that? I think it is ascending wedge pattern.
Isn't it weird that I just called this pattern as "ascending triangle" then I changed the word to "ascending wedge"?
You should know that we can be sure about the pattern when there is breakout(increasing volume, insane price change) It didn't complete its pattern, so I just assumed that it is ascending triangle pattern, but I was not considering today's movement.
In short, it is ascending wedge pattern which failed to go over the price(8500 satoshi) and may have possibility to become bearish.
2.And there is MACD divergence. Divergence is the phenomenon that the price movement and indicator movement are different.
we have higher high in price(today vs.January 9)
But we have lower high in indicators(today vs. January 9)
In this case, this phenomenon means that current price is unstable, so there is potential of trend change(bullish to bearish)
Overall, There are 2 potentially bearish factor, and I wouldn't dare to buy that.
and currently it was making "ascending triangle" pattern, which is classic bullish pattern. (Pink dot line)
The ascending triangle pattern shows us that there is some kind of price wall, so the price cannot pass above that line. in our case, 8500 satoshi will be the "price wall".
So.. is it bullish? Until yesterday, Yes. There are two factors supporting this opinion.
1.Low(bottom) is continuously ascending, which means that you cannot buy that price anymore(for now)
2.Ascending triangle is one of bullish pattern.
What happened today?
The price go above to the "wall"(8500 satoshi) and tried to go further, but it didn't and came back to the price below the "wall".
should we buy now then? Absolutely NOT.
1.First of all, We can see the ascending triangle pattern if we just consider the triangle made of pink dot line. YES. It is bullish pattern, if the "price wall" is guarded well.
But in this case, the "price wall" was broken today, which means that it is not ascending triangle pattern.
Then what is that? I think it is ascending wedge pattern.
Isn't it weird that I just called this pattern as "ascending triangle" then I changed the word to "ascending wedge"?
You should know that we can be sure about the pattern when there is breakout(increasing volume, insane price change) It didn't complete its pattern, so I just assumed that it is ascending triangle pattern, but I was not considering today's movement.
In short, it is ascending wedge pattern which failed to go over the price(8500 satoshi) and may have possibility to become bearish.
2.And there is MACD divergence. Divergence is the phenomenon that the price movement and indicator movement are different.
we have higher high in price(today vs.January 9)
But we have lower high in indicators(today vs. January 9)
In this case, this phenomenon means that current price is unstable, so there is potential of trend change(bullish to bearish)
Overall, There are 2 potentially bearish factor, and I wouldn't dare to buy that.
Note
Hello, Thank you for the comments below, and here is what I'm thinking.I agree that pattern is still debatable because ascending wedge and ascending triangle are bearish / bullish pattern, considering the good news.
There is something we should know : the buying point, where the classical chart pattern strongly recommend to buy, is where the breakout happens, not inside the triangle. There is reason why they're recommending breakout point, It is safe to do that, not buying in the consolidation.
Suppose it is ascending triangle : we should buy above 8500 satoshi when the time has come.
But for now, the price has not passed breakout point(broke out 8500 satoshi yesterday but came back) and there is potential to be bearish, In this case I wouldn't consider buying this.
If you think I'm wrong, it's fine and even I don't trust my opinion 100%. If so, I can recommend you to buy above 8500 satoshi(the wall I said) but still I don't recommend you to buy now, in consolidation phase.
Note
The price touched support line(pink dotted line, about 7500 satoshi) and it is consolidating near support line. It does not mean I was wrong or I was right yet, because it is just consolidating in short term(about few hours)So if you hold ICX yet, don't panic. In that situation, every bearish comment(including my trading idea) looks so true, but you should know that next movement is not decided yet.
Trade closed: target reached
I didn't explain the box, the box is the zone with previous consolidation, which means that it'll be support zone. Current price is at the zone(about 7000 satoshi)The price went down enough(I'm not saying downtrend is over) and RSI or other signal is showing potential of reverse action. The price may try to touch previous support line, to test this downtrend.
There is about 15~20% price loss after I published this idea.
I didn't set exact target but I saw the price broke the support line, and went down to the support zone, I'm fine with that.
I expect more downtrend since 1 month old support line just broken,
and only few days passed after that.
This is my first idea published.
Thank you for supporting / following me for this article,
and thank you all commented here.
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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.