The two charts above are identical in all except for the scale. The top chart is standard and the bottom chart is a logarithmic scale. As you can see, we have broken out of the downtrend on a standard scale, but not on the log scale. It seems that we may be heading to test both the top of the the standard scale downtrend as well as the bottom of the log scale downtrend here in the near future.
This correction has been referred to as triangle or falling wedge for quite some time. The most recent bottom surprised many of us as it did not line up with a falling wedge at all. Now, it seems to have made more of a descending triangle? It's possible that we don't break below $6,000 levels, but, because of the descending triangle nature of the pattern, it's possible that we do break below the 6,000 levels before completing an ABCDE corrective wave. Some may call it a WXYXZ pattern, especially if the triangle formation does not hold. Also of note, the similarities between this correction and the correction in 2014 are quite strong. @D4rkEnergY posted a great comparison chart which I'll link to in the related ideas. That chart even shows how we found support on the standard downtrend a couple times before finally heading up.
It is my opinion that it is important to look at both the standard and log scales at this time. Both should be respected. I indicated short on my chart but I'm long first followed by short. Breaking the downtrend resistance on a log scale would be a bullish move. We'd need to reach into the 9000s to convince me.
This correction has been referred to as triangle or falling wedge for quite some time. The most recent bottom surprised many of us as it did not line up with a falling wedge at all. Now, it seems to have made more of a descending triangle? It's possible that we don't break below $6,000 levels, but, because of the descending triangle nature of the pattern, it's possible that we do break below the 6,000 levels before completing an ABCDE corrective wave. Some may call it a WXYXZ pattern, especially if the triangle formation does not hold. Also of note, the similarities between this correction and the correction in 2014 are quite strong. @D4rkEnergY posted a great comparison chart which I'll link to in the related ideas. That chart even shows how we found support on the standard downtrend a couple times before finally heading up.
It is my opinion that it is important to look at both the standard and log scales at this time. Both should be respected. I indicated short on my chart but I'm long first followed by short. Breaking the downtrend resistance on a log scale would be a bullish move. We'd need to reach into the 9000s to convince me.
