Fusion Market Analysis- April 21 2023
Fusion Market Analysis
Utilizing Fusion’s tools we are able to quickly identify the following events occurring on BTCUSD with chart pattern recognition.
This analysis can be interpreted to provide insights into the direction of price.
A Bearish HIKKAKE candlestick pattern formed on April 16th signaling a bearish technical event & BTC followed through on subsequent days.
A Hikkake pattern is signal when price briefly moves in the opposite direction of the prevailing trend.
The price then reverses and moves back in the original direction of the trend.
Considered a useful tool for traders who are looking to identify potential reversals in price trends, it can provide an early indication that the trend may be about to change direction.?
The cup and handle pattern is a technical chart pattern used to identify potential bullish trends in the price of an asset consisting of a "cup" shape followed by a smaller "handle" shape.
Formed by a gradual rise in price, followed by a rounded top and a gradual decline in price.
Handle is formed by a smaller, shorter-term decline in price that follows the bottom of the cup.
The cup and handle pattern is potentially a sign of a bullish trend reversal, indicating that the market has tested the previous high - 30K and has found support at that level.
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Seasonality shows that next month May is a positive month with an average return of 13.80% for BTC with more positive than negative occurrences.
Prices could become cheaper however there has not been a major spike up in volatility signaling that the sell off may not be that strong.
Using cup & handle patterns are often seen as a sign that the price may be about to increase.?
It could possibly have completed a consolidation period and ready to resume the upward trend.
One of the key benefits of this pattern is to identify potential entry and exit points.
Using a weekly chart it is easy to identify that the $30-32K has become resistance, this price level was previously support, but has become resistance after price fell below $30K.?
The current price has been hitting resistance and after the Hikake signal formed the price fell, starting to form the handle of the cup.
We will continue to monitor price, volatility and volume using Fusion to monitor cryptocurrencies.?
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