3 Reasons to Long BTC
Updated
To start things off, I've only been doing TA for a few months now. I'm not an expert on TA and this is just an opinion of my own. If you have any comments regarding my idea / strategy, feel free to comment it below. Thanks!
3 reasons to long BTC:
1. Elliot Wave: Wave 4 cannot cross the territory of wave 1 (Blue)
2. Bullish Divergence (Green)
3. Double Inverted H&S (Purple)
Elliot Wave:
Looking at it in a long term perspective, I read that the territory of wave 4 cannot cross the territory of wave 1. Wave 1 ended at around 9100, depicted by the bold red line on the chart. All we're looking for right now is a bottom somewhere at around the current price of 9200-9300. It could possibly be the recent 9260 one. We're still not quite sure, but all I know is that it's going to have a hard time going down from here because of this rule.
Bullish Divergence:
Looking at the MACD 1H Chart, I noticed an increasing amount of buy volume on its way down. This could be seen as the green lines on the chart and could suggest a possible bullish reversal at this point.
Double Inverted H&S:
Because of the Elliot wave, the Bullish Divergence, and the current price action, I can see around 2 Inverted Head and Shoulders Pattern, one inside of the other. The necklines are indicated by the purple lines located at around 9800 and 10500. I have a feeling bears won't let the bulls run off so easily and add some resistance to extended uptrends.
I placed some possible good buy areas if any of these patterns come into play. 9400 still seems like a risky price to buy, since I'll never be sure if these patterns will actually turn out to be true. Looking forward to good bull run til then.
3 reasons to long BTC:
1. Elliot Wave: Wave 4 cannot cross the territory of wave 1 (Blue)
2. Bullish Divergence (Green)
3. Double Inverted H&S (Purple)
Elliot Wave:
Looking at it in a long term perspective, I read that the territory of wave 4 cannot cross the territory of wave 1. Wave 1 ended at around 9100, depicted by the bold red line on the chart. All we're looking for right now is a bottom somewhere at around the current price of 9200-9300. It could possibly be the recent 9260 one. We're still not quite sure, but all I know is that it's going to have a hard time going down from here because of this rule.
Bullish Divergence:
Looking at the MACD 1H Chart, I noticed an increasing amount of buy volume on its way down. This could be seen as the green lines on the chart and could suggest a possible bullish reversal at this point.
Double Inverted H&S:
Because of the Elliot wave, the Bullish Divergence, and the current price action, I can see around 2 Inverted Head and Shoulders Pattern, one inside of the other. The necklines are indicated by the purple lines located at around 9800 and 10500. I have a feeling bears won't let the bulls run off so easily and add some resistance to extended uptrends.
I placed some possible good buy areas if any of these patterns come into play. 9400 still seems like a risky price to buy, since I'll never be sure if these patterns will actually turn out to be true. Looking forward to good bull run til then.
Trade active
So far, the pattern is still intact. It flew a lot earlier than expected, nevertheless the pivot points are still positioned on the right areas. I'm guessing we will max out here at 10400-10500 with another small head and shoulder pattern. This will push us back to 9600-9800, but hopefully shoot us right up towards another long bull run.Note
Shifted the pivot points earlier in time just so it won't get confusing.
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