BTC.D pattern analysis (Rising & Descending broadening wedges)

23 พ.ย. 2020

Hello everyone,

Today I´ve prepared for you Bitcoin dominance (BTC.D) analysis based on patterns.

The 1st one is:
BEARISH rising wedge


The rising wedge can be one of the most difficult chart patterns to accurately recognize and trade. While it is a consolidation formation, the loss of upside momentum on each successive high gives the pattern its bearish bias.
However, the series of higher highs and higher lows keeps the trend inherently bullish.
The final break of support indicates that the forces of supply have finally won out and lower prices are likely.
There are no 100% measuring techniques to estimate the decline – other aspects of technical analysis should be employed to forecast price targets but I tried to draw it for you for easier recognition in the left top corner.

The 2nd one is:
BULLISH descending broadening wedge after a peak


A descending broadening wedge is bullish chart pattern (said to be a reversal pattern). It is usually formed by two diverging bullish lines.


There are no 100% measuring techniques to estimate the decline – other aspects of technical analysis should be employed to forecast price targets but I tried to draw it for you for easier recognition in the right bottom corner.
The price objective is given by plotting the wedge’s maximum height onto the breaking point

A descending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines . The upper line is the resistance line; the lower line is the support line.
Each of these lines must have been touched at least twice to validate the pattern.
NB: a line is said to be "valid" if the price line touches the support or resistance at least 3 times.
This implies that the descending broadening wedge pattern is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times).

Statistics of the descending broadening wedge after a peak

- In 79% of cases, the exit is bullish.
- In 23% of cases, a descending broadening wedge occurs in a consolidation movement.
- In 81% of cases, the pattern's price objective is achieved when the resistance line is broken.
- In 40% of cases, the price makes a pullback in support on the descending broadening wedge’s resistance line.

I personally think that we had in previous days Bitcoin dominance fake out which seems to be turning into alt ralief/btc catch up run till the end of December/ January which could drag BTC.D down to approx. 53% again.
Rest is showin in the chart.

I previously called the top of it and expected the approx. path here

This is where we are now at So I´ve decided to make a update with new prediction call and that bringed us to current TA


Hope you like this technical analysis and I wouldn´t mind if you please leave a like & comment to me as a feedback is very importan for me.

Thanks !


ChaChain
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Disclaimer:
I´m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and therefore I´m unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.

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