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BTCUSD | Two important questions about further price actionAfter trading below $11 000 for weeks, Bitcoin finally broke above that psychological level with a 5% increase in the past 24 hours. The alt coins have come along for the ride, and the market cap has jumped by nearly $20 billion since yesterday. The price rally finished 5 impulse Elliott waves pattern and formed an ascending supportive trend. The consolidation area is located around $11 300 zone which is represented by Ichimoku green cloud. Q1: What should happen next? We can see decreasing trade volume based on oscillator relative value which is below 0. Directional Movement Indicator (DMI) is still bullish but +DI line decreases and soon will cross key level. Such conditions reveals decreasing buying power and upcoming trend shift. Based on these findings we can forecast a small local increase but it soon should change to a downtrend which can bring the price to consolidation area near with $11 300 area. Q2: Will this level hold the retracement? It is possible due to bullish mood of the market and DeFI market capitalization outflow back to spot market. However 5 Elliott waves pattern is usually followed by Elliott ABC corrective waves which work perfectly with Ichimoku clouds indicator which shows where downward pressure should meet a strong resistance. In such cases price action tends to decrease until lower red edge which acts as a support. Summary Elliott ABC correction wave pattern has not been finished yet. It still can be rejected if price bounces from support near (B) point. In this case we can see a new growth waves begin. However there is a higher probability of retracement pattern to be finished and in this case we will see Bitcoin's price action in lateral trend around $11 030 level Hedge your positions with strict risk management settings Best regards, SkyRock Signals team
COINBASE:BTCUSD
by Skyrexio
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