As the market starts to bounce back up, most of the coin chart are showing similar patterns at the bottom.
After dropping twice mainataining slightly two differnt support levels, price has bocunced back up. To check the possible price trend the following will be used:
- the ichimoku cloud and the double bottom( adam&eve) chart pattern.
THE DOUBLE BOTTOM ( ADAM&EVE)
At this point the fibonacci retracement level is used to check the move and the authenticity of the chart pattern. The ADAM and EVE pattern which everyone know that the U shaped bottom is considered to be the EVE while the V shaped bottom is the ADAM(pointed bottom).
A return back to the NECKLINE where the peak of the two valley meet will decide if the resistance will be broken.
The Adam & Eve double bottom is a chart pattern that performs best in a bear market. In a bull market, however, it's just an average performer.
PREVIOUS MARKET RESULTS:
Break even failure rate: 5%
Average rise: 37%
Throwback rate: 59%
Percentage meeting price target: 66%
Price trend Downward leading to the pattern.
Two distinct valleys that look different. Adam bottoms appear first and are narrow, V-shaped, sometimes with one long price spike. Eve bottoms appear after Adam and are wide and more rounded looking. Spikes that appear tend to be more numerous and shorter on Eve bottoms.
The rise between bottoms should measure at least 10%, but allow variations. Tall patterns perform better.
Bottom price - The price variation between bottoms is small. The two valleys should appear to bottom near the same price.
The twin valleys are several weeks apart with most falling in the 2 to 6 week range.
The double bottom confirms as a true double bottom once price closes above the peak between the two valleys.Without confirmation you do not have an Adam & Eve double bottom, just squiggles on a chart. AS SHOWN BELOW:
Lastly, THE ICHIMOKU CLOUD SET UP
On the four hours time frame, using the double cloud settings.
The Ichimoku Cloud, the Cloud uses four metrics to determine if a trend exists or not; the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span.
The status of the current Cloud metrics on the four hours time frame, with doubled settings (20/60/120/30) for more accurate signals, are averagely mixed; price is in Cloud, Cloud is bearish, TK cross is bullish about to take place below the cloud, and the Lagging Span is above the price buut under the cloud.
The Edge-to-Edge long trade, which was triggered when price broke Cloud resistance and TK cross getting closer, remains active with a target of 0.00002258sats and 0.00002336sats.The RSI has crossed te 50 level,which suggested waning bullish momentum, and will likely consolidate at the current level before moving higher.
Technicals suggest that an active bull trend with a retest of March 11th highs. Near-term, the STOCHASTIC RSI indicators suggest price is slightly overbought in this zone without any threat to the trend.
SELL:0.00002258sats up to 0.00002387sats
STOP LOSS: 0.00001971sats
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.