Validation for a bullish call in $BTC

Nov 11, 2018

This is a rare pattern that makes a large descending triangle a reversal pattern and not one for a continuation of the bearish trend. In Elliottwave theory when two triangles nest inside a large descending triangle and has 9 hits into the apex of the pattern, and on falling volatility, the pattern favors the bears. So far the pattern is holding true with a breakout to the upside where trend line D becomes our guide of support moving forward.

Momentum is low as the black ADX line drops (why it did not moon on the break), but the trend still favors a near-term bull trend as the green positive directional index line does not cross down through the red negative directional index line. According to this indicator this market turned bullish on the breakout at point 9 on the chart.

As price dropped this last time to test trend line D the RSI did not drop as far showing less sellers on the latest price drop. This should add support to trend line D as we going into next week. The gap on the RSI is a nice bull signal with a lot of room to move before we get concerned about overbought conditions