That escalated quickly.
While I expected the floor to be tested, I did not expect it to be tested this quickly.
Bitcoin PA High Time Frame (HTF) Analysis
The High Time Frame (HTF) Point and Figure Chart (1W, Box Size 300, 3 Box Reversal), above illustrates once the formation established the Trade Range with a ceiling of $79,500 and a floor of $65,100 in Phase A of this Wyckoff Accumulation Range, it moved into Phase B where true accumulation begins and the Trade Range is tested.
The ceiling of this Trade Range was tested with a swift Upward Thrust (UT) to $82,800 and was met with a massive selloff (with volume) that drove the price to the $65,400 handle which is within $300 of the floor of the range, forming a Low Pole in Point and Figure Chart Analysis. This is generally a bullish setup for a Low Pole Reversal.
Bitcoin PA Low Pole Reversal
When a Low Pole forms (a decline of at least three boxes), this signals a potential bottom and the end of a downtrend with a bullish reversal pattern in play. Once seller exhaustion happens one should expect the formation to “Reclaim the Pole” - The reversal X's must rise at least as far as the O's fell.
Key Price Handles
If we assume the fall to $65,400 was the climax of the selloff to establish the Low Pole one would expect the reversal to drive the relief rally to $79,200 to “Reclaim the Pole” when this reversal pattern plays out.
A few caveats to this.
First, I am not totally convinced $65,400 is the climax of the selloff. There is the potential the formation would retest the long-term channel trendline at the $63,000 handle forming a spring before the reversal. Anywhere within the $67,000 – $63,000 should be an excellent entry point to trade the reversal. Pigs get fat, hogs get slaughtered.
Second, given the formation is at the beginning stage of Phase B, the Low Pole Reclaim may reclaim only 50% of the pole, targeting a relief rally to the $72,300 handle on a swing trade. An exit anywhere between $72,000 and $79,000 should be an excellent exit.
Always remember this is not trading advice.
Outside of that, Happy Trading.
While I expected the floor to be tested, I did not expect it to be tested this quickly.
Bitcoin PA High Time Frame (HTF) Analysis
The High Time Frame (HTF) Point and Figure Chart (1W, Box Size 300, 3 Box Reversal), above illustrates once the formation established the Trade Range with a ceiling of $79,500 and a floor of $65,100 in Phase A of this Wyckoff Accumulation Range, it moved into Phase B where true accumulation begins and the Trade Range is tested.
The ceiling of this Trade Range was tested with a swift Upward Thrust (UT) to $82,800 and was met with a massive selloff (with volume) that drove the price to the $65,400 handle which is within $300 of the floor of the range, forming a Low Pole in Point and Figure Chart Analysis. This is generally a bullish setup for a Low Pole Reversal.
Bitcoin PA Low Pole Reversal
When a Low Pole forms (a decline of at least three boxes), this signals a potential bottom and the end of a downtrend with a bullish reversal pattern in play. Once seller exhaustion happens one should expect the formation to “Reclaim the Pole” - The reversal X's must rise at least as far as the O's fell.
Key Price Handles
If we assume the fall to $65,400 was the climax of the selloff to establish the Low Pole one would expect the reversal to drive the relief rally to $79,200 to “Reclaim the Pole” when this reversal pattern plays out.
A few caveats to this.
First, I am not totally convinced $65,400 is the climax of the selloff. There is the potential the formation would retest the long-term channel trendline at the $63,000 handle forming a spring before the reversal. Anywhere within the $67,000 – $63,000 should be an excellent entry point to trade the reversal. Pigs get fat, hogs get slaughtered.
Second, given the formation is at the beginning stage of Phase B, the Low Pole Reclaim may reclaim only 50% of the pole, targeting a relief rally to the $72,300 handle on a swing trade. An exit anywhere between $72,000 and $79,000 should be an excellent exit.
Always remember this is not trading advice.
Outside of that, Happy Trading.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.