A Bullish Scenario
We can see a number of indicators pointing to a possible bullish scenario. Firstly we have seen a bullish divergence play out on the RSI indicating that a reversal is on its way. We then saw a double bottom forming new market structure in an upward direction, creating Elliott Waves 1 and 2. Price in wave 3 should rise quickly with corrections brief, therefore for Elliott Waves to be valid we should see strong price drive upwards with corrections short lived and shallow. Potential inverse H&S forming with the neckline above the peek of wave 1, allowing validity for a wave 4 correction to retest neckline followed by strong price movement up through the little resistance zone all the way to 5.5k. Be best prepared by considering multiple scenarios and having the flexibility to adapt accordingly.
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