More Clues Toward A Bullish Case
BTC.D/TOTAL CRYPTOCAP:BTC.D/CRYPTOCAP:TOTAL
Potential Ending Diagonal Printing
We are finding resistance at the upper trend line of Wave-1 Origin & Wave 2 top. This indicates that a potential 5th wave down of the ending diagonal may occur. It is a common outcome for retracement from the upper trend line to exceed the lower trend line, favorably the 1.618 of Wave IV of the primary degree.
Rules of an Ending Diagonal:
- Can be formed on the 5th wave of an impulse wave or Wave C of a flat
- Consists of 5 waves: Wave 2 & 4 are correctional. Waves 1, 3 & 5 can be
impulsive waves or correctional in zigzag patterns - Comes in a regular wedge or expanding wedge
- The 2nd wave does not go beyond the beginning of the 1st wave
- The 3rd wave cannot be the shortest wave
- Wave 2 & 4 do overlap
TOTAL chart As Blue Line Graph
We can see how TOTAL moves in inverse correlation to BTC.D/TOTAL. Just the slightest lower low in BTC.D/TOTAL can send BTC and alts to new highs.
Potential Bearish Moves on the Minor Degree = Bullish for Crypto
MACD has crossed over the signal line to the downside suggesting bearish momentum. However, structure has been weak to the downside since its recent tag of the upper trend line, suggestion risk-off behavior still present in the market.
Invalidation
If candle structure continues to retrace up through the trend line and exceeds the top of Wave 2 (Marked: Invalidation Level) then this analysis is invalid.
Conclusion
This TA suggests that it is still possible that the crypto market could wake back up at any moment. SOL is starting to show signs of strength and signs of accumulation in other assets are appearing. The ultimate bull trap? Or, are we closing in on the final moments before another run up? Ideas and comments are welcome. Good Luck!
source https://www.tradingview.com/chart/BTC.D/m1OSaesO-More-Clues-Toward-A-Bullish-Case/
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