Bitcoin has made its move and broke the support. But the macro bullish structure remains intact. Let’s take a look at a complicated chart.
Elliott:
We are able to count an ABC (in blue) if we ignore the spike on 4 Dec. This is (somewhat) justified when we look at the CME market / CFD products only, which don’t have this spike as it occurred on a weekend.
Wave C can extend 1.618 of wave A. The target is then 41800.
Geometry:
The channel median provides support currently. The .25 fib of the large channel (green line) provides confluence with the 1.618 extension, and the 61.8% retracement level.
Oscillators:
The RSI and MFI show a bullish divergence. The Stochastic is oversold and due to move up.
Correlations:
Ideally we need DXY to break down and QQQ to remain stable for BTC to recover. DXY is still at multi-month resistance.
How to trade it:
We can expect liquidity in the 39800 to 41800 zone. The 41k level gives us a good risk-reward ratio to test a long with tight SL. The idea is to re-build long exposure when BTC reclaims (and holds) the 46k level.
Elliott:
We are able to count an ABC (in blue) if we ignore the spike on 4 Dec. This is (somewhat) justified when we look at the CME market / CFD products only, which don’t have this spike as it occurred on a weekend.
Wave C can extend 1.618 of wave A. The target is then 41800.
Geometry:
The channel median provides support currently. The .25 fib of the large channel (green line) provides confluence with the 1.618 extension, and the 61.8% retracement level.
Oscillators:
The RSI and MFI show a bullish divergence. The Stochastic is oversold and due to move up.
Correlations:
Ideally we need DXY to break down and QQQ to remain stable for BTC to recover. DXY is still at multi-month resistance.
How to trade it:
We can expect liquidity in the 39800 to 41800 zone. The 41k level gives us a good risk-reward ratio to test a long with tight SL. The idea is to re-build long exposure when BTC reclaims (and holds) the 46k level.
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.
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.