BTC 87.1k confluence
Updated
This idea will present multiple aspects of what BTC price action is doing.
Each aspect will be broken down in different snapshots so that at the end we have a understanding of the greater picture.
Elliot Wave & Fibonacci
The assumption is that each correction wave will bounce from the 0.5 0.618 Fibonacci levels. The levels should have confluence with previous highs so that resistance turns support.
Wave 1 stopped just above the 0.618 level.
Wave 2 stopped just bellow 0.5 level.
Wave 3 stopped just above level 2.
Wave 4 should stop just above ~52.9k
Confluence with Fibonacci levels from Point 0 to 3 waves.
So a good approach for the current PA would be to accumulate in the green zone between ~57.7k and ~53k.
Wave 5 should reach at least the 1.618 level at around 87k.
Level 2 would be between 98k and 100k.
Log Trendline
Support is now resistance.
Locally
We are forming a rising wedge with a RSI and MACD bearish divergence. I've also plotted a channel that interestingly has the bottom support in confluence with wave 3 high.
Question is what will BTC do at the bottom of the channel and if we make a higher high or a lower confirmation high that will take us to the accumulation zone ?
One scenario is that we could form a H&S that as usually will probably underperform and instead of reaching the target will bounce from the accumulation zone.
I will post ideas related to this on lower time frames like 4H and 1H to look for confluence.
Each aspect will be broken down in different snapshots so that at the end we have a understanding of the greater picture.
Elliot Wave & Fibonacci
The assumption is that each correction wave will bounce from the 0.5 0.618 Fibonacci levels. The levels should have confluence with previous highs so that resistance turns support.
Wave 1 stopped just above the 0.618 level.
Wave 2 stopped just bellow 0.5 level.
Wave 3 stopped just above level 2.
Wave 4 should stop just above ~52.9k
Confluence with Fibonacci levels from Point 0 to 3 waves.
So a good approach for the current PA would be to accumulate in the green zone between ~57.7k and ~53k.
Wave 5 should reach at least the 1.618 level at around 87k.
Level 2 would be between 98k and 100k.
Log Trendline
Support is now resistance.
Locally
We are forming a rising wedge with a RSI and MACD bearish divergence. I've also plotted a channel that interestingly has the bottom support in confluence with wave 3 high.
Question is what will BTC do at the bottom of the channel and if we make a higher high or a lower confirmation high that will take us to the accumulation zone ?
One scenario is that we could form a H&S that as usually will probably underperform and instead of reaching the target will bounce from the accumulation zone.
I will post ideas related to this on lower time frames like 4H and 1H to look for confluence.
Note
Bull div on MACD and RSI, looks like we getting a bounceNote
In the buy area, might not get a better chanceNote
What now ?
Sideways consolidation shake & bake ?
Note
bottom is inTrade closed manually
Wave 5 canceled we break 39.6k bear market confirmed.
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