GALA / TetherUSLong
Bottom in for Gala: Key Indicators Signal Bullish Momentum
The Wave 2 correction for Gala began on December 5th and initially appeared to be a straightforward Zig-Zag pattern. However, it evolved into a more complex WXYXZ correction, making navigation challenging.
The correction concluded with a bottom at $0.03034 on Monday, December 13th. While I initially anticipated a larger retracement for Wave C, the strong price action suggests truncated Wave C, falling short of expectations. This marks a pivotal turning point for Gala as bullish signals begin to dominate the landscape.
Why I’m Now Bullish
Momentum Indicators Are Bullish
The Weekly and Daily Stochastic RSI have flipped bullish. I employ a dual momentum strategy, trading in the direction of the higher time frame (Weekly) and seeking entries on the Daily or Hourly charts. With both the Weekly and Daily Stochastic RSI indicating bullish momentum, purely based on the strategy I no longer maintain a bearish bias.
Breakthrough of Key EMAs
Gala's price has broken above the Exponential Moving Averages (EMAs) on both the 4-Hourly and Daily charts. This signals strong upward momentum and a potential shift in trend direction.
XRP Validation of Wave 3
XRP has broken the high of Wave 1, validating that it is now in Wave 3 of its bull run. This is significant because altcoins like Gala often follow broader market leaders like XRP.
Bitcoin’s Ascension into Wave 5
Bitcoin’s recent price action suggests it has begun its ascent into Wave 5. Bitcoin’s movements have a strong influence on altcoins, and its bullish trajectory supports the case for Gala’s upward potential.
Addressing Bearish Sentiment on Bitcoin
Many market participants remain bearish on Bitcoin. Understandably as Bitcoin has had a relatively shallow correction barely correcting down to the 0.386 Fibonacci level, which is typically a minimum expectation for a Wave 4 retracement under Elliott Wave theory. However, markets do not always adhere to theoretical expectations.
My analysis of Bitcoin’s wave count indicates that Wave 4 likely concluded at $98,888.98, and it is now ascending into Wave 5. While bearish skepticism is understandable, Bitcoin’s current price action suggests the bearish scenario is becoming increasingly unlikely.
Short-Term Bearish Action
At the time of writing this momentum indicators on the 1, 2, 4, 8, and 5-hour time frames are bearish, signaling the potential for short-term downside price action. This could provide a final opportunity to enter the market before momentum across the hourly, daily, and weekly time frames aligns fully to the upside. It is worth noting that price action is strong so looking for a dip might prove difficult.
Next Moves for Gala
I’m now focused on identifying an optimal entry point into the market as Gala transitions into the much-anticipated Wave 3. While short-term price action may be choppy, the key level to watch is the break $0.0666. Once this level is reclaimed, it will likely serve as a confirmation of Gala's Wave 3.
The correction concluded with a bottom at $0.03034 on Monday, December 13th. While I initially anticipated a larger retracement for Wave C, the strong price action suggests truncated Wave C, falling short of expectations. This marks a pivotal turning point for Gala as bullish signals begin to dominate the landscape.
Why I’m Now Bullish
Momentum Indicators Are Bullish
The Weekly and Daily Stochastic RSI have flipped bullish. I employ a dual momentum strategy, trading in the direction of the higher time frame (Weekly) and seeking entries on the Daily or Hourly charts. With both the Weekly and Daily Stochastic RSI indicating bullish momentum, purely based on the strategy I no longer maintain a bearish bias.
Breakthrough of Key EMAs
Gala's price has broken above the Exponential Moving Averages (EMAs) on both the 4-Hourly and Daily charts. This signals strong upward momentum and a potential shift in trend direction.
XRP Validation of Wave 3
XRP has broken the high of Wave 1, validating that it is now in Wave 3 of its bull run. This is significant because altcoins like Gala often follow broader market leaders like XRP.
Bitcoin’s Ascension into Wave 5
Bitcoin’s recent price action suggests it has begun its ascent into Wave 5. Bitcoin’s movements have a strong influence on altcoins, and its bullish trajectory supports the case for Gala’s upward potential.
Addressing Bearish Sentiment on Bitcoin
Many market participants remain bearish on Bitcoin. Understandably as Bitcoin has had a relatively shallow correction barely correcting down to the 0.386 Fibonacci level, which is typically a minimum expectation for a Wave 4 retracement under Elliott Wave theory. However, markets do not always adhere to theoretical expectations.
My analysis of Bitcoin’s wave count indicates that Wave 4 likely concluded at $98,888.98, and it is now ascending into Wave 5. While bearish skepticism is understandable, Bitcoin’s current price action suggests the bearish scenario is becoming increasingly unlikely.
Short-Term Bearish Action
At the time of writing this momentum indicators on the 1, 2, 4, 8, and 5-hour time frames are bearish, signaling the potential for short-term downside price action. This could provide a final opportunity to enter the market before momentum across the hourly, daily, and weekly time frames aligns fully to the upside. It is worth noting that price action is strong so looking for a dip might prove difficult.
Next Moves for Gala
I’m now focused on identifying an optimal entry point into the market as Gala transitions into the much-anticipated Wave 3. While short-term price action may be choppy, the key level to watch is the break $0.0666. Once this level is reclaimed, it will likely serve as a confirmation of Gala's Wave 3.
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