Bitcon's daily chart comparison -- April low v. Current low
The daily chart gives us a large picture of the overall price movement. There is a possibility that the large price movement from February has created one of the two wedges noted. The support of the first is derived off the candle bodies and the current low would need to be the spring which means upward momentum would have to breach that resistance line of the descending wedge. However, if the second is the actual descending wedge support line, then we should expect a rally right now, followed by a movement down toward the support level one more time in preparation for the actual spring and subsequent bull market return. Either one of these would only be valid if we are in an accumulation phase as I believe we may be at this time. I have provided the Wyckoff of the first already. I am working on a Wyckoff of the second and will post it once it's done. I am also completing a comparison of this current phase with the accumulation phase after 2014 for those who have some concerns about the size of the TR and the ensuing volume profiles, and will be posting that as well.
Currently, on this daily chart, I am watching for RSI to breach that descending resistance line. We should expect to see %B breach its own resistance line prior to that. MACD is also about to print a bullish cross which is inline with a movement up from this general area. While Bitcoin price did print a bearish engulfing candle yesterday, without confirmation today (another bearish candle) it means nothing. As of this time, price is printing a potential reversal candle. If Bitcoin can close the day with a candle similar to its present design, then we would need to see a bullish candle tomorrow to confirm it. Reversing today/tomorrow would set up a potential heck of a weekend as liquidity dries up, making it much easier to move price with lower order sizes.
Currently, on this daily chart, I am watching for RSI to breach that descending resistance line. We should expect to see %B breach its own resistance line prior to that. MACD is also about to print a bullish cross which is inline with a movement up from this general area. While Bitcoin price did print a bearish engulfing candle yesterday, without confirmation today (another bearish candle) it means nothing. As of this time, price is printing a potential reversal candle. If Bitcoin can close the day with a candle similar to its present design, then we would need to see a bullish candle tomorrow to confirm it. Reversing today/tomorrow would set up a potential heck of a weekend as liquidity dries up, making it much easier to move price with lower order sizes.
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