BTC - The Fifth Leg
Updated
So BTC price has just broken the downtrend channel (dark red dashed line) which has proved to be the heaviest resistance area since the crash. This is THE best bullish sign so far since the crash. If we keep above the channel, we could confidently say we have completed wave 2 of the final wave (5) and have entered wave 3. From here, I would like to see the price break the middle orange dashed channel line and towards the top of wave (5)’s channel line (black dashed line). We want to keep on the right side of the 200 EMA which is a great bullish sign. I have started my trade with 2/3 of my total position @ $10,750 and will add on the remaining 1/3 after further confirmation. Preferably a break of the middle orange channel. My target for this trade is $12,600 (17.19%).
If the support here cannot be held then it wouldn’t look good for the bulls. Bearish pressure could push the price to the start of wave 1 which would then could be a turning point. Therefore I would place my stop at $10,200 (5.13%).
Confidence Rating: 8/10
If the support here cannot be held then it wouldn’t look good for the bulls. Bearish pressure could push the price to the start of wave 1 which would then could be a turning point. Therefore I would place my stop at $10,200 (5.13%).
Confidence Rating: 8/10
Note
After a good weekend, we are still on route to our targets! We broke above the orange middle channel line however we couldn't maintain it and dropped below. This shows the weakness in the bulls but there are other forces at work here.We look to be completing an inverse head & shoulders pattern, in which the target would be around $17,700. In order to confirm this pattern we must break the neckline with some volume. This could lead us to the end of the 5th of 5th wave at the resistance level around $12,700 where it could take a correction before fulfilling the target.
In whatever scenario we must pay attention to the wave count! We still aren't all out bullish yet. Good luck everyone!
Note
I have not added the final position to my trade yet as we couldn't keep above the orange middle channel line. As we are near resistance at @ $11,750 I will wait the breakout for this to add to my position.Note
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