Arbitrum course development: a potential opportunity for the favorable purchase of arb coin
Arbitrum course development: a potential opportunity for the favorable purchase of arb coin
arbitrum course: potential trading opportunities due to price formation
Welcome, dear reader. Do you still remember Arbitrum? That was the most used L2 layer solution from Ethereum, which hardly anyone speaks about. It was different in the time of the Arb-Airdrop. However, the disappointing prices of the ARB Coin quickly steered the interest of the crypto investors in other directions. But it is precisely in such moments that there are often potential opportunities that we want to talk about today.
In today's edition on Bitcoin-Bude, we talk about the Arbitrum course and a possible trading opportunity that is evident on the chart. Even for investors with a longer -term time horizon, a lucrative way could offer ARB cheap. I will explain in detail why I think so.
First, as always, the fact that all articles on Bitcoin-Bude only serve to transfer information and knowledge. Readers are not suggested to copy what is discussed here. If you do it anyway, this happens at your own responsibility.
arbitrum course shows signs of soil formation
First, we want to look at the classic technical chart analysis why the Arbitrum course could experience soil formation. Then we will immerse yourself in the details based on the Elliott wave theory in order to examine the true potential of the entire wave construct.
From the perspective of classic technical chart analysis, there is a lot to suggest that the Arbitrum course is currently forming an inverse head and shoulder formation. The left shoulder and the head seem to be well -shaped. What is still missing is the completion of the right shoulder.
We are still at a very early stage of this chart formation. But this is exactly where the attraction lies. Let's look into the glossary of the chart pattern and look at what is written for the inverse head and shoulder formation, we find the following:
"Since the error rate for this chart pattern is only 5%, no confirmation has to be waited for.
Of course we cannot be 100% sure that this is a functioning head and shoulder formation. However, the declining volume pattern speaks for this throughout the wave structure. There is also a certain symmetry that is also typical of this chart pattern.
arbitrum forecast: minimum course goal of $ 1.57
With these clear indications we can say that the Arbitrum course trains an inverse head and shoulder formation. Now let's take a look at which price target can be derived from this according to the classic technical chart analysis.
In order to calculate the minimum course goal, we draw a vertical line to the neck line from the lowest point of the formation (i.e. the head). We then project this route to the outbreak point to calculate the price target. In 83% of cases, the minimum course goal is achieved or even exceeded.
A outbreak point is not yet available at the Arbitrum course, but the neck line is almost horizontal. The exact time does not change much to the price target. Accordingly, we can create an arbitrum forecast as follows:
The minimum course goal is $ 1.57 and thus around 42% above the current price of the Arb Coin. With an R/R ratio of just over 2, the current entry level does not offer an optimal value ratio, but in view of the high reliability of the formation, I still see a lucrative setup.
This assessment is not only based on the chart formation, but also on my wave count, which allows much bullish arbitrum forecasts. I explain which these are in the following.
arbitrum forecast of $ 2.60 or higher
First, it should be mentioned that I have recognized an impulse movement since the last low. This means that the previous upward movement could only be the beginning of something.
In theory, it could only be the beginning of a corrective movement. In this case, the arbitrum forecast of $ 1.57 derived from the head-shoulder formation would continue to apply. However, my primary expectation is much more buller. This is primarily due to my current positive assessment of the Bitcoin course. Based on the fact that the entire market goes through a bullish cycle, a completely different arbitrum forecast can therefore be derived. This looks as follows:it is assumed that the Arbitrum course has already completed the waves (i) and (II), we can wait for the third part of the impulse movement. As a rule, this should reach or surpass the 1.618 Fibonacci extension level. This is $ 1.77 and thus around 66% above the current price of the Arb Coin.
I also consider the psychological brand of $ 2 to be a good price goal for the end of the third wave. In both cases, this also creates a bullish formation in the long -term trend that promises further significantly higher highs.
Therefore, this entry is also interesting for long -term investors. With the Arbitrum forecasts derived from the Elliott wave theory, there are completely different price targets of $ 2.60 or higher and thus a much better R/R ratio.
Of course, investors should always keep an eye on the risk.
Source: [Bitcoin Bude] (https://bitcoin-bude.de/arbitrum-s-eine-trading-glace