On the chart, you can see that there are four blue frames, each labeled fractals 1-3. The price movements inside of these frames are incredibly similar to each other. This unmistakable mirror-like repetition, is a expression in BTC . When patterns like this emerge, they can be very valuable in projecting the future movement of the market. However, they are also a double sided sword, in the sense that they can end unexpectedly.
As a refresher on these expressions that I've been covering, I'll walk you through it from the beginning. However, before we start, please note that #1 is slightly different than #2 and #3. With that said, let's begin.
#1 starts with a big which produced a small breakdown (pink arrow,) followed by a rally above the 50 (purple arc,) followed by a that dropped below the 20 (in blue.)
#2 began with a , which produced a breakdown (pink arrow,) followed by a rally above the 50 (purple arc,) followed by a that dropped below the 20 . Then, that flag produced a small breakdown, (this is where the original expression changed) which reversed to the upside, and then produced a (spike) above the 20 . Then, price failed to stay above the EMAs, and a small was formed.
#3 is nearly identical to #2. It began with a big , which produced a small breakdown (pink arrow,) followed by a rally above the 50 (purple arc,) followed by a that dropped below the 20 . Then, that flag produced a small breakdown, which reversed to the upside, and then produced a (spike) above the 20 . Then, price failed to stay above the EMAs, and a now we're in a . Albeit, a very extended , but regardless, it's the exact same that ended #2, just before the breakdown into #3.
With that said, things are changing a bit here. In the current , you can see that it's starting to get a bit long in the tooth. If you can tell, subtle changes have emerged that are different from what we've seen in the recent past. In particular, this that we're in, has managed to not break down when the 20 (in blue) passed through it's body. That means it's the first , out of the past 8 that didn't break down from a intersection with the 20 . So, that is definitely noteworthy. Additionally, you can see that price action has poked above the top of the newly formed (in dashes) and it's currently flirting with the 50 (in orange.) Regardless, the pattern that I've been following still stands strong. These developments are not ideal, but the pattern still remains. If we see a breakout to the upside from this , that would change the progression of the . However, as I've just shown with the prior examples, fractals can change slightly, and then follow the same general path. However, if this fails, I would consider the pattern dead. After all, we are at the end of #3. #4 is not guaranteed.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-