Wave Analysis on BTCUSD
Scenario 1 (not on chart):
A V-shape recovery is possible given the the right market conditions but this is still a low probability outcome. And to expect a V-shape recovery, we would mostly likely require a sharper and larger price dip than the current prices.
Scenario 2 (as per chart analysis):
What could be a more natural and likely scenario is that price gradually pushes lower and break the 28000-27000 zone to the dotted line support (iii). Then it may retest the blue resistance line (iv) before going sideways to form the final wave. We can also expect Wave C to end with a bounce off the 200SMA.
Summary:
I anticipate these 2 scenarios and either way is good for me. My strategy is to use the Weekly log chart for analysis, average in at all the giant dips and be a long term hodler of Bitcoin.
A V-shape recovery is possible given the the right market conditions but this is still a low probability outcome. And to expect a V-shape recovery, we would mostly likely require a sharper and larger price dip than the current prices.
Scenario 2 (as per chart analysis):
What could be a more natural and likely scenario is that price gradually pushes lower and break the 28000-27000 zone to the dotted line support (iii). Then it may retest the blue resistance line (iv) before going sideways to form the final wave. We can also expect Wave C to end with a bounce off the 200SMA.
Summary:
I anticipate these 2 scenarios and either way is good for me. My strategy is to use the Weekly log chart for analysis, average in at all the giant dips and be a long term hodler of Bitcoin.
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