Bat Harmonic forming after another rejection at resistance line
تم تحديثه
Hi guys, got another BTC update for you. I meant to put this out yesterday before the drop overnight, so I apologize for not getting this out until this morning.
But I noticed yesterday there was the possibility of a bat harmonic pattern playing out. So far it seems to be following this pattern very nicely, so I want to share this with you.
Here we see Point B almost perfectly retraces the XA leg 50% which would have made a perfect bat variation.
All other points fall within the retracement and extension ranges that must be followed in a Bat Harmonic pattern.
For the Potential Reversal Zone (PRZ):
Since the C point retraces 81.1% of AB, the BC inversion level is determined by 161.8% of BC. This rule is determined when the B-point is 50% of XA.
Because we are slightly below 50% I wanted to include the BC inversion level for when B-point is less than 50% of XA, which gives us a BC inversion of 200%.
I realize that B-point is much closer to the 50% of XA, however because there is a confluence of the 88.6% retracement of XA level and this 200% BC inversion, I felt it was appropriate to chart this as part of the PRZ.
This gives us a pretty wide range for the price to reverse, however I want to also note the confluence of the rising green trend line that intersects the PRZ.
As I’ve mentioned several times in my other ideas, this green trend line has acted as a strong support for Bitcoin since Sept. 15th and I expect it to hold Bitcoin up once again.
Therefore I feel more confident there will be a bounce off the green trend line, than off the very bottom of Point D, although there could very well be a price spike down to this level.
Please remember that Point D is not static and must be moved to bottom of the lowest candle wick once this bottom has been established and a clear reversal occurs.
Then we can also re-stretch the Fibonacci retracement levels to figure out price targets.
As a guide, I have already established price target 1 as the 38.2% retracement of AD leg and price target 2 as the 61.8% retracement of AD leg.
Both targets are the green Fibonacci levels on the right hand side.
Again, once Point D is established, we will need to re-stretch the fib levels to the actual Point D, which can fall anywhere within the PRZ zone (green).
Thanks for taking the time to read my analysis, please show some support if you liked my idea!
But I noticed yesterday there was the possibility of a bat harmonic pattern playing out. So far it seems to be following this pattern very nicely, so I want to share this with you.
Here we see Point B almost perfectly retraces the XA leg 50% which would have made a perfect bat variation.
All other points fall within the retracement and extension ranges that must be followed in a Bat Harmonic pattern.
For the Potential Reversal Zone (PRZ):
Since the C point retraces 81.1% of AB, the BC inversion level is determined by 161.8% of BC. This rule is determined when the B-point is 50% of XA.
Because we are slightly below 50% I wanted to include the BC inversion level for when B-point is less than 50% of XA, which gives us a BC inversion of 200%.
I realize that B-point is much closer to the 50% of XA, however because there is a confluence of the 88.6% retracement of XA level and this 200% BC inversion, I felt it was appropriate to chart this as part of the PRZ.
This gives us a pretty wide range for the price to reverse, however I want to also note the confluence of the rising green trend line that intersects the PRZ.
As I’ve mentioned several times in my other ideas, this green trend line has acted as a strong support for Bitcoin since Sept. 15th and I expect it to hold Bitcoin up once again.
Therefore I feel more confident there will be a bounce off the green trend line, than off the very bottom of Point D, although there could very well be a price spike down to this level.
Please remember that Point D is not static and must be moved to bottom of the lowest candle wick once this bottom has been established and a clear reversal occurs.
Then we can also re-stretch the Fibonacci retracement levels to figure out price targets.
As a guide, I have already established price target 1 as the 38.2% retracement of AD leg and price target 2 as the 61.8% retracement of AD leg.
Both targets are the green Fibonacci levels on the right hand side.
Again, once Point D is established, we will need to re-stretch the fib levels to the actual Point D, which can fall anywhere within the PRZ zone (green).
Thanks for taking the time to read my analysis, please show some support if you liked my idea!
ملاحظة
Hi guys, I just realized that my support lines somehow got messed up when I made this chart. The price has actually been bouncing off this green support line on all my other charts, so here is the revised version of this. I also moved Point D further off to the right since the price has been moving slower than expected. The pattern is definitely still valid, and I will be watching closely over the next few days for a reversal in the PRZ. Here is the revised chart: 
تم حذف الأمر
Target not reached. The price dipped well below PRZ, never got to see a strong reversal and then dropped below Point X making the pattern invalid. On to the next analysis...
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.