Yesterday I said if price broke above the neckline of the inverted head and shoulders, it would likely hit $7,540.
Today, price did break the neckline and, while it didn’t hit my $7,540 target (at least not yet), it did reach $7,475.
Looking at the 4 hour RSI, we can see it’s rather overbought. This suggests a pullback is likely in the near future.
I believe this will be a healthy wave 4 pullback, setting up wave 5 to possibly break above the $7,700 resistance. There are 2 scenarios in which I feel this may take place. Scenario 1 has wave 3 not yet complete. It would have wave 3 targeting about $7,700 and might play out like this:
Scenario 2 has wave 3 nearly complete, with wave 4 preparing to begin. Here’s how this scenario may play out:
There’s a third scenario that’s more bearish. It has bitcoin making another run at the $7,490-$7,700 resistance zone and getting rejected (double top). If that happens, we can expect bitcoin to drop back down and test the prior $6,800 resistance, which should now act as support. Here’s how this might play out:
My big picture count remains the same.
If price can rise above the descending resistance line, I’ll start believing we completed an ABC correction, and are now implusing up as shown below.
Looking at the daily chart, we can see price has risen above the 55 day EMA. If todays candle can close above, that would signify strength, and help solidify the gains made in the last few days.
Watch my video analysis for much more detail not found above:
Video Analysis:
BIAS:
Short Term: Slightly Bullish
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
