Surfs Up! BTC Correction Wave to Ride!
Updated
Hi All,
Welcome back to BTCUSD, my last chart showed the completion of the double top forcing us down into more bear territory.
I have taken on feedback and reduced the indicators to show a clearer image.
The downside movement has now fizzled out and we are looking to take action to the upside TEMPORARILY, as the bears regain their full energy for the final push to the downside of this channel. This is only a temporary hibernation.
For now we are leveraging Elliot Wave Theory to provide our next move. We have commenced the 5th and final wave to the downside off this impulse movement and the corrective wave looks to begin as we have formed an inverse head and shoulders pattern on the 1HR and 4HR charts. We have had sporadic volume volatility in the last 24 hours and if we continue the trend upon the completion of this inverse H&S pattern, we may hopefully see a blast through the resistance level set around the 7300 mark. Currently the 100 EMA is holding down the neckline o the H&S pattern, look for a surge in volume to push us through before a corrective B movement and a final push upwards to the 9000 resistance and the steam runs out! We will then begin our final descent down to the target buy zone under 6000.
IF we fail to obtain the momentum to break the 100 EMA line above the inverse H&S pattern on the hourly chart, we may see a retrace to the neckline before attempting another move upwards. Failure on the second attempt would no doubt send us dropping like a rock to previous support.
The alts have bled and mostly met their bottoms, bitcoin has a bit more blood to give. We have some great trading opportunities coming in these next few movements to a level we may never see again. Remember to look at the big picture, the disruption to the global economy that Bitcoin brings. Have faith on the bounce!
*** This is not financial or trading advice ***
Welcome back to BTCUSD, my last chart showed the completion of the double top forcing us down into more bear territory.
I have taken on feedback and reduced the indicators to show a clearer image.
The downside movement has now fizzled out and we are looking to take action to the upside TEMPORARILY, as the bears regain their full energy for the final push to the downside of this channel. This is only a temporary hibernation.
For now we are leveraging Elliot Wave Theory to provide our next move. We have commenced the 5th and final wave to the downside off this impulse movement and the corrective wave looks to begin as we have formed an inverse head and shoulders pattern on the 1HR and 4HR charts. We have had sporadic volume volatility in the last 24 hours and if we continue the trend upon the completion of this inverse H&S pattern, we may hopefully see a blast through the resistance level set around the 7300 mark. Currently the 100 EMA is holding down the neckline o the H&S pattern, look for a surge in volume to push us through before a corrective B movement and a final push upwards to the 9000 resistance and the steam runs out! We will then begin our final descent down to the target buy zone under 6000.
IF we fail to obtain the momentum to break the 100 EMA line above the inverse H&S pattern on the hourly chart, we may see a retrace to the neckline before attempting another move upwards. Failure on the second attempt would no doubt send us dropping like a rock to previous support.
The alts have bled and mostly met their bottoms, bitcoin has a bit more blood to give. We have some great trading opportunities coming in these next few movements to a level we may never see again. Remember to look at the big picture, the disruption to the global economy that Bitcoin brings. Have faith on the bounce!
*** This is not financial or trading advice ***
Note
Update:We have broken through the inverse H&S neckline as well as the 100 EMA which will fuel our move to the upside of the current corrective wave. Unfortunately the volume for this move fell short of what i was hoping for but none the less has moved us across the resistance point freeing the price up for some wiggle room to the upside.
This correct wave should move us upwards to the 8000-8200 zone before bringing us back to reality. Please remember we are still in a bear market and until we obtain confirmation, moves to the upside are not long term at this stage.
In support of the move to the upside, there have been several multi-billion dollar asks placed in the OTC market over the last 24 hours which indicates investor confidence is returning. These are great signs for Bitcoin however the liquidity is going to prevent these orders filling any time soon, keep this in mind with your trading.
Source: CharlieShrem, @Disruptepreneur
Note
Welcome back! On the latest update we can see that the upside movement from our inverse H&S breakout has been stopped dead in its tracks at the 200 EMA.
We will need some strong volume to push us to the upside, else we are risking a possible downside move back to the neckline of the original inverse H&S pattern.
Interesting times ahead, if we begin our move to the downside now we might reach our buy zone much sooner than anticipated.
Note
As predicted, the head & shoulders formation bounced off the 200 EMA line forcing us to the downside. The momentum has broken through the base line of the inverse head & shoulders which will now push us into an early start on the predicted impulse wave to the downside.The 50 EMA has crossed the 100 EMA supporting the move down.
*** Updated Elliot Wave To Come ***
Note
With the breakdown from the H&S pattern commencing the downside impulse wave earlier than expected, i have updated the projections to match the latest move
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.