For days I’ve been pointing out the bearish rising wedge that had formed. Yesterday I warned of a possible major drop, saying the only thing holing bitcoin up was the large number of short positions. Clearly that wasn’t enough to continue propping price up. As it approached the apex of the wedge, price broke down very impulsively. While we may see a temporary bounce, I believe we could see lower prices...at least in the short term.
Looking at the daily chart, we can see price dropped below the 50 day MA, but found support on the 21 day EMA. I’ll be very surprised if this support holds.
Zooming out on the 1 week chart, I can see 2 counts I believe are the most likely. The first is more bearish, and has bitcoin in a WXYXZ pattern. This would bring price down potentially as low as $5,500. Here’s how it could play out:
My bullish count has bitcoin completing a WXY pattern, and currently in wave 2, of 5 waves up. Here’s how it could play out:
In today’s video analysis, I discuss a big picture view of the market, price movement in the short term, traps to avoid and MUCH more information not found above. I hope you find it helpful.
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: Slightly Bearish
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
