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Elliiotwave

BTC/USD 4H/1D charts (11/9/2018)Good morning, traders. It looks like Bitcoin may be completing the recent corrective move now as it finds support around the bottom of the blue TR/4H pivot/equilibrium of the black TR as I mentioned the past few days during our morning live stream that I was watching for it to do. This is also the 61.8% retracement of that move up from 10/31. These two movements -- up and then down -- have been orderly, suggesting another leg up is in the works. In terms of the larger black TR, this should be the next LPS. The 4H RSI is sitting on oversold at this time and has printed a steep descending wedge from overbought. OBV is continuing to print a large descending broadening wedge. The 15 minute MACD and its histogram are currently printing bullish divergence while RSI is bouncing off oversold once more. Price is printing a descending wedge in that short TF as well. Depending on how much kick we can get from this current position, price should be targeting the $6756-$6830 level with the possibility of a surge up to the 4H R4 pivot at $6975/1D R2 pivot at $7071 (2.618 extension is at $7099). Tensorcharts.com is showing more sell pressure but support appears pretty thick around $6300 with Bitstamp providing 656 BTC and other spot exchanges following suit with support at that same general level. As a matter of fact, it appears that the sell pressure may be originating from Bitmex. Remember, even though it is swap and not spot, the reality is that it contributes to price finding. So, if there is strong sell pressure in swap then spot will react accordingly as we are seeing this morning. While this is the expected bottom of this corrective leg, until it is confirmed traders should remain wary of entering a trade. Ultimately, we are watching for price to push through the upper black horizontal line which denotes the top of the resistance area at the $6800 level thereby creating a show of strength (SOS). The expectation at that point would be retracement and consolidation around that upper black horizontal line (possibly printing a pennant) in the form of a "back up to the edge of the creek/last point of support" (BUEC/LPS) followed by another SOS above $7000. If that SOS-to-BUEC/LPS prints a pennant around $6800, then at this time we can expect a target of around $7600 when price breaks the pennant's resistance. This would complete the complex fulcrum and should signal the bull market is likely in effect. Remember, a breach of $8500 gives us the higher high that we've been waiting for and would likely be a strong buy signal to many traders sitting on the sidelines. After that, $10,000 becomes the next signal, and then of course the February high around $11,780. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSD
by Chris_Inks
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