BTC Wave E of Contracting Triangle Appears to be Underway Background:
Triangles are sideways price action and a contracting triangle can be described as the top line (B to D) is declining and the bottom line (A to C to E) is rising. The corrective structure is labeled as ABCDE.
Commentary:
Yesterday, we posted that we appeared to be in Wave E of a contracting triangle on the minor degree, which would be invalidated with a close greater than 37,449.
Today, we update the chart and consider that the daily candle made today may be the start of Wave E and not the day before.
Although our previous invalidation point was not taken out, our new invalidation price would be a close greater than 38,874.71
Strategy Moving Forward:
We will look for completion of Wave E and consider the next wave may be a larger move.
We will also keep in mind the apex of the triangle for future price movement and look for signals to enter a test of the apex.
Wave / Pattern Analysis:
We are looking at the recent high of 42,000 USD as the completion of wave 5 on the minor degree and possibly wave 3 of the intermediate degree.
We appear to be Wave E in a contracting triangle on the minor degree.
Weekly Momentum:
Weekly signal is still bearish
Daily Momentum:
Daily Momentum is still bearish
Trade Signal:
No daily signal was generated today.
Summary:
While we look for BTC to consolidate and go lower in the short term, we are not yet in a position to enter a trade.
