Good day Hiveians!
Join me in analyzing the crypto markets!
So ever since the "big dip" I have been looking for deeper insights into the market
I updated my bitcoin scenario yesterday which includes a three wave pattern. And yes, I am arguing that we are still in a bull market. Check out the post for more details. For now, I want to have a look at this 3 wave pattern which I am about to argue is what we are seeing for pretty much every coin on the market.
The most crucial condition for this scenario to play out is the support at 34-35k. If it does not hold up, consider this scenario as invalidated. So far it has held at exactly 34k.
What we can see in this chart are three new blue trend lines that I introduced. They form the base the middle and the peak of the 3 proposed waves. This is unusual in the sense that we didn't have this pattern in previous bull markets. Instead, the last phase of the market was marked by just one huge impulse wave. In this cycle upward momentum is thwarted and seems to only slowly reach higher highs.
The other conditions for this scenario (which already played out) was the fact that the peak of wave 2 was higher than wave 1 and that the low of wave 2 was higher than wave 1. This generally means that the market has still room to the top.
The three blue trend lines then form a very nice channel for which wave 3 can move in. And the peak at 100k is exactly in line with the logarithmic price projection one can look up at e.g., glassnode.
Finally, have a look at the diagonal blue trend line (on the right) which was the former support and now turned into a resistance. This line should mark the peak of this bull cycle.
All the lines perfectly unite at the 100k price level. And this just so fits the exact time window I was proposing for the bull market to climax in. Coincidence?
So, why did I call this post the "3 wave bull market"?
It seems that this build up to a third wave is visible for just about any other coin. Obviously, they are all more or less dependent on BTC, but still, I find it noteworthy to point this out. Notice, that their peak would also come from a trend line which was a former support.
Have a look for yourself:
Hive
Rune
DEC
KOIN
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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