TraderEye Market View: Are we expecting a combined breakup ?

Tuesday, October 15, 2024

Are we expecting a combined breakup ?

Ethereum, which is somewhat correlated with Bitcoin (bottom chart with daily wedge pattern) is on the verge of a possible breakout of a bullish head and shoulders pattern. Are we expecting a combined breakup ? We will have to wait patiently.

Attached is a daily chart of the Ethereum price showing the bullish head and shoulders pattern that has not yet broken out.

Attached is a daily chart of the Bitcoin price showing the bullish Wedge pattern that has not yet broken out.

The contradiction between technical patterns and harmonic patterns and its meaning - please note that in Bitcoin on the breakout level of a bullish wedge technical pattern there is a bear shark harmonic reversal pattern in a 4-hour time frame and also on the breakout level of the bullish head and shoulders technical pattern Ethereum there is a bat-type harmonic reversal pattern Bearish in a 4-hour time frame. Apparently there is a significant contradiction here, but according to the literature of harmonic patterns, if there is a breakout of the technical patterns despite the harmonic reversal levels, the breakout is expected to be significant. If so, this contradiction forces us to take great care!

Attached is a 4-hour chart of the Bitcoin price showing a bear shark pattern on the threshold level of the technical pattern:

Attached is a 4-hour chart of Ethereum price showing a bearish bat pattern on the threshold level of the technical pattern:

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