Most theories will look simply at support levels. This is Bitcoin and its not that simple. We need a contrarian thought process:
formation occurs when a market trend is in the process of reversal either from a or . Does this mean we are or . Based on support levels the bears are in control.
We are also in massive formation on an upward trajectory. Given the one could speculate that this will force the price to break the upper resistance line of the and then we will be in a VERY big bull run.