Bitcoin's Green Christmas?
The bounce of bitcoin has reached the first goal of the rally, around the 4200 area. The next target is around 5000.
We could have 2 scenarios:
Bitcoin correction towards 3600 to build the right shoulder of the pattern. I think it would be healthier and would give more strength to a great future.
Bitcoin keeps its price above 200 EMA and breaks the neckline of the pattern with volume confirmation. This scenario can generate rapid gains but is weaker in the long term (it leaves less chance of Bitcoin reaching the 5k target).
if Bitcoin will rise above Resistance 4400, the next possible resistance will be around the 5200 price. If Bitcoin falls below Support 3800, we may have another downward trend below the price level of 3000.
What To Expect In Longer Short Term?
Keep in mind that BTCUSD rotated abruptly and impulsively up from around the 3100 level with five waves on the A / 1 wave. In fact, we have expected a reversal of around 3000 areas, but we wanted to be sure. five waves suggest a bullish reversal, but in the EW theory, after every five waves, a three-wave reversal occurs, which may occur in January 2019. Having said that, consider a deeper drop in a wave B / 2 before a bullish continuation for the C / 3 wave. An ideal support would be between the 3800-3500 area, where we can see even a possible inverted H & S pattern.
If for some reason it falls below the invalidation area of 3100, then the bulls would be dead.
Tell me what you think, we have had a massive race in the last 10 days,. Anyway, we know that this is bitcoin, and its great real impulse makes the price less Predictable than when dealing with a daily basis.
resteem and upvote and comment on my post if you found it helpful.
happy trading