Technical Analysis - Fantom
FTM/BTC - 11/21/2019
As shown in the chart above, we will be analyzing the technical status of Fantom against Bitcoin.
We will be asking a series of questions to come to a reasonable conclusion:
What is the current market structure?
Currently, on the 1Daily timeframe, we can see a market structure, which looks like a bottoming process. That is mostly seen after a long downtrend, the price starts moving/swinging at a level of support, starting to create higher lows and higher highs. Looking at this particular pair, we can even see a triple bottom formation beginning to form.
Does a triple bottom mean more downside?
Short-term this could indeed mean more downside. A ripple bottom forms when a price gets rejected three times in the same area of support after a more extended downtrend. Nevertheless, the last rejection/bounce mostly is already seen by many market participants and occurs with a higher probability above the area of support. Translated for the interested investor, this would resemble a possibly quick touch of the 128 Satoshi level.
What impressions give the indicators?
First, we take a look at the Volume. Here we can see a slowly decreasing sell-volume, showing weakness by the sellers at these levels. Further, we look at the Fibonacci Tool, which is depicting the most recent lows precisely at the 50% retrace line. Additionally, all further key-levels align with the Fibonacci levels, where each of them shows an increased probability of a bounce. Next, the TJ-Index is showing 6 out of 15 points, still being reasonably bullish, yet not in oversold conditions, where a reversal could be expected soon. Last, we take a look at the FOMO Algorithm, still being in a valid Sell-signal, not showing any signs of printing a Buy-signal soon.
Overall, FTM/BTC is a pair to be watched. As we elaborated above, we can see many signs which could be turning bullish within a reasonable timeframe.