Since yesterday’s breakout, bitcoin has dropped back into the expanding wedge. It bounced off the $6,280 support, and then respected the descending resistance line of the expanding wedge. Price is now trading within a range between the $6,280 support and top of the expanding wedge. The battle between bulls and bears certainly rages on.
I’m seeing many mixed signals throughout the market. For example, the 4 hour RSI has developed a small rising wedge. This suggests price may break down, at least temporarily.
Shorts remained stacked, while longs are weak. From a market makers point of view, they may want to drive price up to take out stops, then bring it crashing back down.
I realize this is frustrating to hear, but I’m seeing structure that could drive the market in either direction. From a bullish perspective, we’ve completed a well known bullish reversal pattern, which I discussed these past 2 days (Bulkowski’s wedge). Zooming in on the 1 hour chart, we can see bitcoin appears to have completed 5 clear waves up, an ABC correction and is now starting 5 more waves up. If this count is accurate, it might play out like this:
From a bearish point of view, I could count that wedge as an expanding triangle, ABCDE correction. If that’s correct, bitcoin MAY have started 5 waves down. If correct, it could play out like this:
In today’s video update, I outline where each count will be validated and invalidated. I also discuss further price movement, traps to avoid, various scenarios to watch out for and MUCH more. If you’re not watching my videos, you’re only getting a small part of the story.
Video Analysis:
If you’re viewing this on a site other than Steemit, and you don’t see the above video, navigate to Steemit or TIMM (https://mentormarket.io/profile/@workin2005?aff_id=Workin2005) in order to watch.
BIAS:
Short Term: Neutral
Longterm: Very Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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by Workin2005
