For those of you covering the crypto markets you know how volatile the cryptos have been as well as this downward move we are seeing in the markets. When looking at the 4 hour chart on BTC, some signs start to show of what pattern we are looking at in the markets today.
As you can see by the chart, we are on the bottom of a running flat pattern. Meaning that we should see resolution of said pattern to the upside. This means that we should see a significant upward impulse move that should take us into April and take out the prior high's from before. What happens after that could be one of two things a downward move that will retest the prior low from before and possibly break it or a break of the running flat to the upside. Either of these directions doesn't matter really right now because we are seeing the current move to head upwards and it is a strong signal as both the bullish and bearish case of this chart align on this move.
Looking at the daily of the S&P500 you see a similar pattern. Is this coincidence? We have seen a lot of similarities between the two so it's anyone's guess but right now there is a pretty bold case for correlation between the markets within the current move. With the S&P 500 I have a more bearish case as we should see the end of the current crash and then resolution to the downside. So we should see positive gains in the market for the next couple days as it climbs to the top of the running flat and then see the next major drop in the coming weeks.