ICON / Bitcoin
Hi friends! Welcome to this update analysis on ICON! Let's get it! Looking at the four hour chart, we can see that ICX/BTC has continued to slide, since my last bear call. If you recall, I said "You can see that each time we had a broke above the 50 EMA (in orange,) Icon printed topping tales on the candles. This occurred on high volume , and then ICX/BTC quickly reversed to the downside. Looking at the current action, you can see that the exact same thing appears to be happening. We've broken above the 50 EMA printed two topping tales, and now the current candle is returning to the downside." Since that call, you can see that the topping tale formations, on high volume , with subsequent corrections, proven to be a repetitive pattern in Icon. That pattern has produced a 21.2% fall.
Currently, ICX/BTC is in a downtrend toward the next major support level of about 3075. However, if you'll notice on the fourth candle back, there is a relatively long wick at the bottom, which is indicative of accumulation. That shows that there was some buy-side pressure from the 3333 area. If that level falls, it will put added sell pressure on the Icon, because all of the buyers who accumulated form the 3333 area would then be underwater, and would have to consider exiting their positions. In other words, the 3333 level is important for ICX/BTC to hold, in order to produce some sort of reversal to the upside. Unfortunately for the bulls, there is no real evidence of a reversal at this point.
I'm sure you've noticed the candle counts on the chart. You can see that the first time Icon produced this pattern, it entered a downtrend after the first topping candle, which was 23 candles long. The second drop was 21 candles long — nearly identical. In this decline, we are currently 15 candles into the corrective move. If the pattern is going to repeat itself, we can expect further downside, to produce a higher candle count on this slide. A count of around 21 candles, could put us on the support level at 3075. However, we need to watch to be sure that this small downtrend channel isn't breached. You can see that the breakouts on the last two channels, produced sideways consolidation. So, if you went short on my last analysis, and you're sitting in profits, for educational purposes, it may be a good idea to cash out, when the black channel is breached.
Looking at the MACD , you can see that momentum continues to expand to the downside, as it falls under a weak bearish crossover that occurred on the 27th. Icon remains in a downtrend channel (in black,) but it's currently testing the top side of the channel, so we will have to watch it as a potential exit signal for short trades.
