Bitcoin - Consolidation then prior highs in August?
TL;DR: Bitcoin is overdue for a pullback/ consolidation after completing wave 3 of the 5 wave Elliott pattern, looking at the exponential upper trend line the next move up (most likely seen in fits and starts, not one continuous unimpeded run) could have us retesting prior highs by mid-late August. The green support line ($10,400 USD) is the intermediate wick low, this low needs to be held, otherwise we risk a sharper drop to the prevailing trend line.
Bitcoin has enjoyed a monster rally, in just over 2 week Bitcoin reached a high of close to 14,000 USD, before retreating.
From the looks of things, Bitcoin is due for a period of sideways/ minimal downside action whilst this move is digested by the markets, it is possible that we see one more orgasmic rally higher, however this would greatly increase the odds for a substantial pullback, the red trend lines outline a possible move higher, coupled with a rising wedge pattern (likely to resolve to the downside).
This is not my preferred outcome (but my opinions be damned in the eyes of the markets).
The more likely (and preferable) outcome is a period of consolidation, note the green support line, Bitcoin tends to run high and fast, then crash down before eventually shooting up again, providing us with a wick low, these wick lows generally represent the intermediate lows, if we can stay above this level and move sideways, the odds strongly favor reaching prior highs in the coming weeks, or at latest, months.
This argument for consolidation is strengthened by the fact that we have recently broken above the 50% Fibonacci retracement, these levels tend to represent moments of hiatus in the price action once they are breached.
As always, anything can happen in this market, keep your wits about you and remember that anything can happen at anytime.
Bitcoin has enjoyed a monster rally, in just over 2 week Bitcoin reached a high of close to 14,000 USD, before retreating.
From the looks of things, Bitcoin is due for a period of sideways/ minimal downside action whilst this move is digested by the markets, it is possible that we see one more orgasmic rally higher, however this would greatly increase the odds for a substantial pullback, the red trend lines outline a possible move higher, coupled with a rising wedge pattern (likely to resolve to the downside).
This is not my preferred outcome (but my opinions be damned in the eyes of the markets).
The more likely (and preferable) outcome is a period of consolidation, note the green support line, Bitcoin tends to run high and fast, then crash down before eventually shooting up again, providing us with a wick low, these wick lows generally represent the intermediate lows, if we can stay above this level and move sideways, the odds strongly favor reaching prior highs in the coming weeks, or at latest, months.
This argument for consolidation is strengthened by the fact that we have recently broken above the 50% Fibonacci retracement, these levels tend to represent moments of hiatus in the price action once they are breached.
As always, anything can happen in this market, keep your wits about you and remember that anything can happen at anytime.
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