Bitcoin has retraced as anticipated in my previous article (see Wave 5). So much for all the nonsense hype at the Bitcoin conference. Bitcoin has tested the 103K area and found some support but is developing a mini bear flag (see arrow). IF the 103,500K level is broken, that confirms the corrective structure is still in play and a test of 102 to 100K can still be the dominant scenario for the coming week (NFP this week). This means for swing traders on this time frame, it is likely too early for longs.
The 102 to 100K area is still the major support that I anticipate. A long signal here can look like a pin bar on this time frame, or a double bottom formation on a 4h or 1h chart. It often pays to wait for these scenarios but there is always a risk of missing the move if price confirms a reversal pattern sooner.
IF the current candle closes much higher (above 106K) then it will invalidate the bear flag. This means the bullish continuation would be in play. In my opinion this is a lower probability, but you have to be open to it. In the bullish scenario a test of 110 to 112 servers as a profit objective. While a breakout beyond 112 can happen, the more you expect, the more RISK you must be exposed to. A test of high is more probable than a new high. Along with that, I suspect current price action is more likely to consolidate rather than continue high over the short term because 5 waves are clearly in place. That usually means a corrective structure is likely to follow, and that is what we are currently in.
The bullish candles are too early to buy into. If the bear flag plays out, there will be more attractive prices to wait for reversal formations. Otherwise, work smaller time frames, look for small bites going either way and keep the size small. This is not an easy environment.
The 102 to 100K area is still the major support that I anticipate. A long signal here can look like a pin bar on this time frame, or a double bottom formation on a 4h or 1h chart. It often pays to wait for these scenarios but there is always a risk of missing the move if price confirms a reversal pattern sooner.
IF the current candle closes much higher (above 106K) then it will invalidate the bear flag. This means the bullish continuation would be in play. In my opinion this is a lower probability, but you have to be open to it. In the bullish scenario a test of 110 to 112 servers as a profit objective. While a breakout beyond 112 can happen, the more you expect, the more RISK you must be exposed to. A test of high is more probable than a new high. Along with that, I suspect current price action is more likely to consolidate rather than continue high over the short term because 5 waves are clearly in place. That usually means a corrective structure is likely to follow, and that is what we are currently in.
The bullish candles are too early to buy into. If the bear flag plays out, there will be more attractive prices to wait for reversal formations. Otherwise, work smaller time frames, look for small bites going either way and keep the size small. This is not an easy environment.
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I hosted ICTC 2025: whitebit.com/m/ICTC-2025
Try Trade Scanner Pro for FREE: bit.ly/TSCPRO
LIVE Day Trades: youtube.com/@marcpmarkets.signals
Watch Full Trade Scanner Pro Tutorial: youtu.be/fdFLhLnqM9A
Try Trade Scanner Pro for FREE: bit.ly/TSCPRO
LIVE Day Trades: youtube.com/@marcpmarkets.signals
Watch Full Trade Scanner Pro Tutorial: youtu.be/fdFLhLnqM9A
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.