SUMMARY
Wow! What a reversal in progress! Last night I had indicated that a bottom is near and showed the below chart. I used the length of white wave (i) to approximate the length of white wave (v) to arrive at $6,013. Prices almost spike dipped as low as $5,550 and if you caught it as a buy, congrats!
The below chart displays a price pathway for further upside towards $7,400 or so. Also, the very first peak consists of five waves and so Bitcoin has an impulse!
The below is a forward discernment using Chart Pattern Recognition. The Head & Shoulders Bottom is quite uncanny. Not only that, the volume thus far confirms! Beautiful! Now, the Right Shouler (RS) needs to complete the H&S Bullish pattern and once price exceeds the white horizontal Neck Line, the pattern would be confirmed!
I've further forward discerned a bullish Head & Shoulders pattern of a larger degree of trend. The below chart shows that a smaller H&S pattern could be embedded within a larger H&S pattern. This adds more pattern confirmation to the reversal. However, both H&S patterns must complete the Right Shoulders.
The counter part is a bearish potential and this is my alternate count. We could potentially be seeing an a,b,c retracement and further downside could occur with lower lows.
From a Chart Pattern perspective, a upward bearish diagonal could be in progress and once the final e wave completes, price could look for lower lows. Again, this is an alternate count.
One must remember that a good Technical Analyst tries to identify as many possibilities and narrow them down to a few probabilities. In that process, a primary and an alternate price pathways are identified. This is also the reason why Technical Analysts often are not surprised by price moves because such has already been considered and evaluated.
On last night's Bitcoin Evening Update, I had stated that once Bitcoin reverses, Bitcoin Cash could do the same, except in the opposite direction. The below chart of BCH shows a forward discerning chart pattern: A Bearish Head & Shoulders Top. It is NOT an accident that such inverse pattern appears on Bitconi Cash. Drawing a line from the main body top of the Head to the Neck Line to find the minimum price distance shows an aread of $221...Is this for real? IF the inverse relationship to Bitcoin; e.g. Non-Phasic congruence; is active; then yes, the Bearish Head & Shoulders could play out. Have you taken your profits humbly and gratefully?
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Laddering and Buy/Sell Setups.
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
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Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**