As with BTC/the market, Ontology had to take a big hit the last few days but there are a few signs that could lead to a quick recovery.
Analyses
- ONTBTC recently broke out of a channel (blue) after making a full 5 wave up in this channel/timeframe (degree) and is now in a new downward channel (purple).
If we look at the EW of the correction, then we could count a 5, 3, 5 wave structure. If this is correct then we should expect a new impulse wave or at least a little bounce from here.
- The retracement has reached past the .50 fib level and is very close to the .618 - .65 fib level, which is usually where buyers come in.
- Also, you see a divergence in the RSI and MACD which indicates a weakening of the bearishness.
Must say that at the current market sentiment it's hard(er) to go for a bullish or recovery scenario cause there's still much uncertainty so be cautious and wait for more confirmation, change in sentiment or go for smaller size when trading for short-term gains.
But if we do get a recovery from this point on, then you can use the above projection as a guideline.
Leave a comment if you have any questions.
Like the post, if you liked it and share it if you loved it. This is for good karma.
And until next time, good luck with your trading!
Analyses
- ONTBTC recently broke out of a channel (blue) after making a full 5 wave up in this channel/timeframe (degree) and is now in a new downward channel (purple).
If we look at the EW of the correction, then we could count a 5, 3, 5 wave structure. If this is correct then we should expect a new impulse wave or at least a little bounce from here.
- The retracement has reached past the .50 fib level and is very close to the .618 - .65 fib level, which is usually where buyers come in.
- Also, you see a divergence in the RSI and MACD which indicates a weakening of the bearishness.
Must say that at the current market sentiment it's hard(er) to go for a bullish or recovery scenario cause there's still much uncertainty so be cautious and wait for more confirmation, change in sentiment or go for smaller size when trading for short-term gains.
But if we do get a recovery from this point on, then you can use the above projection as a guideline.
Leave a comment if you have any questions.
Like the post, if you liked it and share it if you loved it. This is for good karma.
And until next time, good luck with your trading!
