Bitcoin's Subwave 5 of Wave 3 in is motion
Good morning, traders. It's Thursday and Bitcoin is moving as expected at this time. On last night's live stream I spoke about how we expected to see one more push upward toward $7700-$7800 to complete a possible subwave 5 of this Wave 3. Following through in such a way should give price the look of the previous pattern which occurred prior to the breach of the lower supply zone at $6900 and it would allow price enough room to print a shallow Wave 4 since we have a deep Wave 2. This would set up a Wave 5 push either into, or through, the upper supply zone (large green box). My thought is that if price manages to breach the top of that zone, then we should expect FOMO to kick in as shorts cover and/or are liquidated thereby causing price to breach the descending resistance line of the large descending wedge at that time as well. Failure to breach the top of the supply zone will likely see price dropping back for a correction before beginning Wave 1 of the new set and targeting that breach.
The 1H chart shows us the two yellow boxes that I am comparing for further movement to complete the possible subwave 5 toward the 1.272 extension in the supply zone before dropping back to the $7250-$7350 area to complete Wave 4. RSI has made a move above its resistance at 58 which usually indicates a push into overbought territory, bringing price upward with it. MACD just printed a bullish crossover an hour ago, as well, and OBV is printing higher highs and lows in unison with price.
The 1D chart shows price pushing against the bottom of the cloud. My primary expectation on this time frame is to see that push complete into the cloud and then see price ride along the bottom edge of the cloud as it completes Wave 4. Wave 5 should then, as mentioned above, breach the confluence of resistance and target the R2 pivot/2.618 extension. We will have to watch price action as Wave 4 completes and Wave 5 begins to know more, but this is the movement I am watching at this time. Also notice that we have had 5 days of green in a row, with today looking like it may be the 6th. The only time we've seen so much green without a daily pullback is during the bull runs prior to this corrective cycle.
The 1H chart shows us the two yellow boxes that I am comparing for further movement to complete the possible subwave 5 toward the 1.272 extension in the supply zone before dropping back to the $7250-$7350 area to complete Wave 4. RSI has made a move above its resistance at 58 which usually indicates a push into overbought territory, bringing price upward with it. MACD just printed a bullish crossover an hour ago, as well, and OBV is printing higher highs and lows in unison with price.
The 1D chart shows price pushing against the bottom of the cloud. My primary expectation on this time frame is to see that push complete into the cloud and then see price ride along the bottom edge of the cloud as it completes Wave 4. Wave 5 should then, as mentioned above, breach the confluence of resistance and target the R2 pivot/2.618 extension. We will have to watch price action as Wave 4 completes and Wave 5 begins to know more, but this is the movement I am watching at this time. Also notice that we have had 5 days of green in a row, with today looking like it may be the 6th. The only time we've seen so much green without a daily pullback is during the bull runs prior to this corrective cycle.
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