[BTC] One Small Burst Up for Bitcoin Before Correction?
Updated
Hey everyone! I've really been enjoying creating charts here, lately i've had lot of luck using trendlines, fibonacci levels, patterns, etc when it comes to crypto. Posting my charts helps me to be more accurate by explaining stuff out.
So if you've got some alternate chart layouts or different TA methods, comment below!
So BTC here.. In my BTC post from a week ago, I hypothesized an Adam & Eve Double Bottom is starting to form for a longer term reversal.
Those lines are still here but their faded to keep the chart clean and I made the rounded "Eve" bottom dashed since it's still forming and not set in stone.
It is NOT a line of resistance or support, only an educated guess on the general direction.
Key Points:
~ I've changed the lower bright red line from dashed to solid. Starting from the November '17 lows, extending through Feb '18 lows, it provided a near perfect support for the recent lows on April 1st. That's three consecutive points of significant support which makes it strong.
~ The Thinner dark red line is also important here. it provided support then became resistance. Right now BTC is testing it as it intersects with the upper bright red downtrend line from all time highs, which has never been a support.
~ The 50-Day SMA in Blue is running down along the downtrend line which is creating a confluence of three resistance levels (Red Downtrend, Red Support, Blue 50 D SMA)
~ The price is starting whipsaw around the thin dark red line. It's already broken above it as it nears the 50 D SMA and Downtrend line.
My Hypothesis:
I'm still holding on to the A&E Reversal idea. Short term, I think we can see price move up one more short leg before getting squeezed between the downtrend line and rising dark red line. From there we should begin a correction.
Not enough data to say what happens after that. We could see a retest of the strong red support line before heading back up. But we could have a small correction then continued bull run.
In a very bullish scenario, on a long term chart, I could possibly see this triangle being a "Running Triangle" starting from Nov '17 lows. That would suggest that we are in Elliott Wave E now and are about to break out upwards. I might make a separate chart on that later.
So if you've got some alternate chart layouts or different TA methods, comment below!
So BTC here.. In my BTC post from a week ago, I hypothesized an Adam & Eve Double Bottom is starting to form for a longer term reversal.
Those lines are still here but their faded to keep the chart clean and I made the rounded "Eve" bottom dashed since it's still forming and not set in stone.
It is NOT a line of resistance or support, only an educated guess on the general direction.
Key Points:
~ I've changed the lower bright red line from dashed to solid. Starting from the November '17 lows, extending through Feb '18 lows, it provided a near perfect support for the recent lows on April 1st. That's three consecutive points of significant support which makes it strong.
~ The Thinner dark red line is also important here. it provided support then became resistance. Right now BTC is testing it as it intersects with the upper bright red downtrend line from all time highs, which has never been a support.
~ The 50-Day SMA in Blue is running down along the downtrend line which is creating a confluence of three resistance levels (Red Downtrend, Red Support, Blue 50 D SMA)
~ The price is starting whipsaw around the thin dark red line. It's already broken above it as it nears the 50 D SMA and Downtrend line.
My Hypothesis:
I'm still holding on to the A&E Reversal idea. Short term, I think we can see price move up one more short leg before getting squeezed between the downtrend line and rising dark red line. From there we should begin a correction.
Not enough data to say what happens after that. We could see a retest of the strong red support line before heading back up. But we could have a small correction then continued bull run.
In a very bullish scenario, on a long term chart, I could possibly see this triangle being a "Running Triangle" starting from Nov '17 lows. That would suggest that we are in Elliott Wave E now and are about to break out upwards. I might make a separate chart on that later.
Note
Here's a visualization of my short term hypothesis. The big red arrow is indefinite, could be a small correction, could be large. We'll see.Note
Looks like BTC wasn't able to hold up above the thin Dark red line originating from Sept'17. While my short term movement prediction didn't come to pass, the general trend prediction seems to be even more likely.Rebound coming on now and seems to be following a head and shoulders pattern before entering main corrective waves.
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