BTCUSD | Two important questions about further price action
Updated
After trading below $11 000 for weeks, Bitcoin finally broke above that psychological level with a 5% increase in the past 24 hours. The alt coins have come along for the ride, and the market cap has jumped by nearly $20 billion since yesterday.
The price rally finished 5 impulse Elliott waves pattern and formed an ascending supportive trend. The consolidation area is located around $11 300 zone which is represented by Ichimoku green cloud.
Q1: What should happen next?
We can see decreasing trade volume based on oscillator relative value which is below 0. Directional Movement Indicator (DMI) is still bullish but +DI line decreases and soon will cross key level. Such conditions reveals decreasing buying power and upcoming trend shift. Based on these findings we can forecast a small local increase but it soon should change to a downtrend which can bring the price to consolidation area near with $11 300 area.
Q2: Will this level hold the retracement?
It is possible due to bullish mood of the market and DeFI market capitalization outflow back to spot market. However 5 Elliott waves pattern is usually followed by Elliott ABC corrective waves which work perfectly with Ichimoku clouds indicator which shows where downward pressure should meet a strong resistance. In such cases price action tends to decrease until lower red edge which acts as a support.
Summary
Elliott ABC correction wave pattern has not been finished yet. It still can be rejected if price bounces from support near (B) point. In this case we can see a new growth waves begin. However there is a higher probability of retracement pattern to be finished and in this case we will see Bitcoin's price action in lateral trend around $11 030 level
Hedge your positions with strict risk management settings
Best regards,
SkyRock Signals team
The price rally finished 5 impulse Elliott waves pattern and formed an ascending supportive trend. The consolidation area is located around $11 300 zone which is represented by Ichimoku green cloud.
Q1: What should happen next?
We can see decreasing trade volume based on oscillator relative value which is below 0. Directional Movement Indicator (DMI) is still bullish but +DI line decreases and soon will cross key level. Such conditions reveals decreasing buying power and upcoming trend shift. Based on these findings we can forecast a small local increase but it soon should change to a downtrend which can bring the price to consolidation area near with $11 300 area.
Q2: Will this level hold the retracement?
It is possible due to bullish mood of the market and DeFI market capitalization outflow back to spot market. However 5 Elliott waves pattern is usually followed by Elliott ABC corrective waves which work perfectly with Ichimoku clouds indicator which shows where downward pressure should meet a strong resistance. In such cases price action tends to decrease until lower red edge which acts as a support.
Summary
Elliott ABC correction wave pattern has not been finished yet. It still can be rejected if price bounces from support near (B) point. In this case we can see a new growth waves begin. However there is a higher probability of retracement pattern to be finished and in this case we will see Bitcoin's price action in lateral trend around $11 030 level
Hedge your positions with strict risk management settings
Best regards,
SkyRock Signals team
Trade active
The price action rejected bounce from the support and broke down. At the DMI indicator +DI line touched key level and is about to intersect - DI which will confirm trend shift. Currently we see the forecasted decrease to $11 300 zone. We expect a penetration of Ichimoku cloud zone soon. If this scenario happens the forecast is confirmedTrade active
Recent sharp decrease was held by horizontal support and downtrend was rejected. However ascending support line was broken and price consolidated below. It means the uptrend is finished. The price should continue moving in lateral trend and we can see a possible formation of rising wedge pattern which can lead to a dramatic drawdown. Although there is still chance to start a new uptrend at lower level near with the price attraction area
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