While we’ve seen a welcome rise in price over the last week, the market as a whole remains weak. In todays video analysis, I discuss what obstacles bitcoin needs to clear in order to usher in a longterm bull run. I also discuss possible price movement in the short and longterm, as well as major support/resistance zones to keep an eye on.
Video Analysis:
Please watch the above video for deeper analysis not included in the screen shots below.
My big picture count remains an overall WXY pattern, with an ABCDE correction to finish the pattern. When looking at the trajectory of the last 3 rallies, we can clearly see the market is weakening. Each rally is moving more sideways than the last. Volume is continuing to drop. The video covers this in much more detail.
Bitcoin is operating within a wedge. I’d expect a break to the up, or down side in the next 24 hours. Indicators are fairly neutral, There’s no clear indication on which direction Bitcoin will break in the short term.
If it breaks up, I believe it’ll more than likely bounce of the resistance zone between $6,750-$6,800.
A break down will likely find support between $6,145-$6070 as shown below. There’s a good chance bitcoin will consolidate between these 2 support and resistance zones for a few days.
The 4 hour RSI still has the ascending support line in tact. If price breaks down, I’d expect a bounce off the support. If the support breaks, I’d expect bitcoin to drop to the $6,145-$6,070 support zone outlined above.
Scenario 1 has bitcoin on wave B of an ABC correction.
Scenario 2 has bitcoin in an expanded flat, with wave C looking for bottom.
Please watch the video for much more information.
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
