(NOTE: I've elaborated and clarified in this post: www.tradingview.com/v/epXhajOr/)
As of late, there's been some kind of consolidation pattern on the bitcoin chart. It looks like a lot of things (descending diagonal, triangle, descending triangle, measured move) but simultaneously doesn't quite "feel" like its any of them. The only thing that's for sure is that it's a consolidation formation (note the descending volume pattern).
I offer one simple explanation: the bat pattern. This pattern represents the re-testing of a critical support/resistance level. (In this case, we'd be looking at a re-test of 375-400.)
The blue horizontal lines show my calculated price reversal zone (aka resistance levels). This *appears* to be a textbook case: all points in the PRZ are tested in one swing, and then not really tested again. (NOTE: The pattern comes out much more clearly on the other exchanges.)
This explanation runs contrary to what we'd normally expect from a consolidation pattern: continuation of the next-largest trend. However, it's consistent with the notion that the formation may have been a messy descending triangle.
(I'm not super familiar with the harmonic patterns. I don't trust this explanation and I don't trust this whole formation. Take this post with salt.)
As of late, there's been some kind of consolidation pattern on the bitcoin chart. It looks like a lot of things (descending diagonal, triangle, descending triangle, measured move) but simultaneously doesn't quite "feel" like its any of them. The only thing that's for sure is that it's a consolidation formation (note the descending volume pattern).
I offer one simple explanation: the bat pattern. This pattern represents the re-testing of a critical support/resistance level. (In this case, we'd be looking at a re-test of 375-400.)
The blue horizontal lines show my calculated price reversal zone (aka resistance levels). This *appears* to be a textbook case: all points in the PRZ are tested in one swing, and then not really tested again. (NOTE: The pattern comes out much more clearly on the other exchanges.)
This explanation runs contrary to what we'd normally expect from a consolidation pattern: continuation of the next-largest trend. However, it's consistent with the notion that the formation may have been a messy descending triangle.
(I'm not super familiar with the harmonic patterns. I don't trust this explanation and I don't trust this whole formation. Take this post with salt.)