So after a lot of indecision in the market the last couple of days, I think we are finally ready for another leg up.
LONGER TIME FRAMES - I was looking for another retracement to the .5 region in case we came down, but the .382 has held strong previously for a subwave 2 correction, so we might just bounce from here over the next 2 weeks or so.
Personally, I still expect another leg down (I'm always bearish until proven otherwise 😜). A possible scenario would be a test of $8200 or maybe even $8000 followed by a big bounce* to start impulse wave 3, which is usually the longest wave, and NEVER the shortest.
*This is the exact point I regularly look for when day trading/scalping. If I can find the bottom of wave 2, and see confirmation of an impulse move up then we go long and aim for a 1:1 extension or in a really bullish market a 1.618:1 extension, which is huge profits!
All in all everything is looking pretty neutral right now, with a long term bias towards the bulls. We could well just head up, but with the weekend coming the volume will drop and I'm thinking a test of $8450 again at the very least.
Stay safe out there when trading, very easy to get rekt right now.
Different perspective - 30 Minute Chart
So if you look here, we have a falling wedge pattern emerging. This is why I'm expecting a break down, as my EW analysis doesn't give me clear indications with this.
In a wedge pattern, I'm looking for 3 touches on a support/resistance to confirm it as such. In this instance I'm looking for a touch around $8250ish before blasting upwards through resistance, through the 55EMA and on to some nice monthly highs.
The next chart shows where I'm getting my $8200 scenario, as many times the C wave will hit the .786 region for a fib based extension, which only further confirms my suspicions that we're going down to $8200ish before a bounce.
I hope that is helpful for you and your trading. If you wanna know exactly what I'm doing, I share a lot of my trades in my Telegram channel, so please check it out for more regular trade updates.
Telegram Channel: https://t.me/traincrypto
Peace.
-B