Rosy Outlook for IOTA/Bitcoin


#1

Technical analysis is all about making sense of chaos. To do that, you must be able to shut the noise and focus on the long-term direction. For instance, a plummet of over 75% can be so overwhelmingly loud that participants who were once invested in the asset might never look at it again. However, those losses may be temporary. The asset might eventually bounce back and even achieve greater heights.

This is the possibility that we’re seeing in IOTA/Bitcoin (IOTA/BTC). In this article, we filter the noise to show how the future is looking bright for IOTA/BTC.

IOTA Bullish Pattern on Higher Timeframe

IOTA/BTC fell to as low as 0.00006726 on August 14, 2018. At this price, the pair has lost close to 80% of its value from this year’s high of 0.00031996. The nosedive may scare newbie investors but this is just noise. From a long-term perspective, this crypto pair is bullish.

Weekly chart of IOTA/BTC

A quick look at the weekly chart reveals that the pair is creating a large symmetrical triangle. The recently created bullish higher low setup on August 14 gives us the confidence to make this assessment. The higher low marks the end of the C wave. Therefore, we may be in the early stages of the D wave. If this is true, then the IOTA/BTC is likely set to more than double its value in the coming months.

Trend Reversal Underway

Another reason why we’re confident in IOTA/BTC is that it just recently reversed its trend on the lower timeframe.

4H chart of IOTA/BTC

A look at the 4-hour chart shows that IOTA/BTC has broken out of a symmetrical triangle pattern. The breakout did cause a loud bang. It did not call a lot of attention. Nevertheless, the lack of noise does not change the fact that bulls have quietly taken over this market.

The breakout marks the end of the 10-month bear run. More importantly, it affirms our expectation that the market will rally in the coming months.

Confidence in Fractals

Is it a coincidence that IOTA/BTC is creating symmetrical triangles on both higher and lower timeframes?

It is not.

The symmetrical triangle on the 4-hour chart is an example of a fractal or a pattern that recurs on a smaller scale. Fractals often hide in plain sight and may not be easy to see. You must not be intimidated by the noise if you wish to spot them.

If you find one, it should give you confidence about your analysis. After all, technical analysis relies on the assumption that history repeats itself in one form or another. Thus, fractals give you clues as to how the market plans to replicate historical price action. They show you the cycle of participant behavior.

Armed with this insight, we can form the expectation that IOTA/BTC will eventually break out of the large symmetrical triangle on the weekly chart. This should enable the market to surpass the 2018 high of 0.00031996.

Bottom Line

IOTA/Bitcoin may have dropped over 75% of its value this year but that’s just noise. If you look at the chart, you will see that the market is bullish on both the short and long-term. The recent trend reversal gives us confidence that the pair is likely to rally and eventually surpass its 2018 high.


Mike Fishy Traders Summary
Mike Fishy Traders Summary