Bitcoin - Massive breakout soon! (pitchfork + falling wedge)
Updated
- As we can see, the uptrend is broken! The pitchfork on the daily chart was the last hope for the bulls, and it has been destroyed by the bears. What's more, the price of Bitcoin from 31k to the current price has a 5-wave structure (impulsive) instead of a 3-wave structure (corrective).
- The chance of going to 15k has increased dramatically at this point, and I believe we can continue even lower, to 10k this year. We still need to wait 10 months for the halving event to potentially push the price higher. For the long term, I would start buying Bitcoin at 15k; it's a very good price, and even if it drops temporarily to 10k or 6k, it's not that big of a deal and you can buy even more. It's still a much better price than 30k or 50k.
- Now the price is printing a leading diagonal (falling wedge) at the top of the trend. Usually, you want to see falling wedges at the bottom of a trend, not at the top of a trend. This is a potentially very good opportunity for the bears because it transforms the general bullish falling wedge pattern into a bearish falling wedge pattern. I can tell you one thing: if the price goes above the wedge, which is possible, it will be a total bull trap and fake out, so if you buy it, a huge dump will follow!
- This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I post trade setups privately.
- From the Elliott Wave perspective, the trend from 15k to 31k is at this point only a 3-wave bearish ABC structure. I can see only 1 major correction, and it's from 25k to 19k, which happened in February / March 2023. But this ABC correction is still not confirmed because it could transform into an impulse wave because the price is still above the wave (A).
- On the road to 15k or 10k, we have a lot of major support. All these levels can be found in my previous idea in the related section down below, so you can use them for your trading decisions or analyses.
- Bitcoin has been going pretty much sideways for almost 3 months, so there is massive volatility expected. The waiting time is almost over!
- Also, Bitcoin was created by the banks, so if you want to know more, check out the related section again! There are my 2 previous ideas.
- Thank you, and for more ideas, hit "Like" and "Follow"!
Note
FOMC in 2 hours, I expect huge volatility.Note
It triggered a massive crash, as expected. The falling wedge is breaking down, and the price is also below the horizontal support line. This is very bearish, and I expect 21k to be hit first. Of course, in the short term, it can go up a little bit, but this idea is on the daily candles, so I do related updates.
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