During my last video update (titled...“Time to Put Up or Shut Up”), I discussed the strong possibility of an impulsive bounce. Price reached the 0.618 fib level right as it intersected with the ascending resistance line. If there was ever a time for a breakout, that was it. Since then, we’ve seen the bounce up to test the $6,600 resistance.
Now we have to wonder if the inverse head and shoulders will come to fruition. We have all the ingredients for it to complete. Short term, I’m expecting a pull back to around $6,600. From there, I believe bitcoin will likely take another run at the $6,800 resistance. The target for the inverse head and shoulders is about $7,540 (watch video below for more detail). I expect some consolidation before the breakout. Here’s how it might play out.
From an Elliot perspective, this looks like the start of a strong 3rd wave. We need to see volume continue to increase if this is to play out. Assuming volume does continue increasing, a logical target for wave 3 is the top of the $7,700 resistance (1.618 fib).
Looking at the daily chart, we can see price has broken above the 8 day EMA (blue line) and 21 day EMA (yellow line). Ideally, we’d like to see the daily candle close above the 21 day EMA, signifying this latest rise has legs.
Watch my video analysis for MUCH more detail not found above.
Video Analysis:
BIAS:
Short Term: 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