Good morning, traders. Bitcoin's move out of the local TR yesterday had a lot of emotional traders on CT upset as they were/are sitting short. This move also pulled price above the descending channel that price has been in since the $4000s and back into the larger TR. Currently, price is hovering around the channel's resistance as well as the bottom of that larger TR. This should be the BUEC/LPS on the local TR as well as possibly the Test of the Spring on the larger one. Based on the blue symmetrical triangle and the flagpole leading to the current flag, price should have a move up to the $3760 area. This would bring it to the equilibrium of the larger TR and expected LPS zone.
Price has followed the path I outlined Friday as I was looking for a move to the top of that channel, at the least, followed by "a Test back down toward the bottom of the TR at around $3475." Price wicked down a bit further to $3441.81 but, nonetheless, it has followed that path. This recent move down is on much lighter volume than the previous which would make it a successful Spring and Test, so the upside target mentioned above should be in play now. This being as it is, this could've just been an ST which means we may still see a Spring after the move toward the top of the TR. This would align with some of the EW calls for one more lower low toward $3000, but it may not be required. We will have to continuing watching price action and volume as the targets play out.
The 1D shows price in the red descending wedge, suggesting a move back toward the top of it. That would give price a target that is similar to the patterns mentioned above. More importantly, a close above the wedge's resistance would set up a new target of $4950, and reaching that target would confirm the double bottom and it's target would be around $5430 as stated below. 1D RSI is just now attempting to push out of oversold once more. As pointed out last week, bullish divergence had been forming on it over multiple days, so this move up shouldn't be a surprise to anyone. The 4H chart shows price sitting just under the McGinley Dynamic. As always, a close above it increases the odds of continued upward momentum.
Friday, I also mentioned how this move down could be printing a double bottom. This pattern won't be confirmed until we see the daily close above the swing high at $4409. So, until then, it is just a possibility. The target based on that pattern would be $5430, which takes price right up to resistance. What happens after that depends on supply and demand. As long as demand is greater than supply, price will press through that level which would bring up the 2018 TR as the target. If price cannot do this, then we will continue looking lower for the targets mentioned throughout last week's other analyses.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
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.
Price has followed the path I outlined Friday as I was looking for a move to the top of that channel, at the least, followed by "a Test back down toward the bottom of the TR at around $3475." Price wicked down a bit further to $3441.81 but, nonetheless, it has followed that path. This recent move down is on much lighter volume than the previous which would make it a successful Spring and Test, so the upside target mentioned above should be in play now. This being as it is, this could've just been an ST which means we may still see a Spring after the move toward the top of the TR. This would align with some of the EW calls for one more lower low toward $3000, but it may not be required. We will have to continuing watching price action and volume as the targets play out.
The 1D shows price in the red descending wedge, suggesting a move back toward the top of it. That would give price a target that is similar to the patterns mentioned above. More importantly, a close above the wedge's resistance would set up a new target of $4950, and reaching that target would confirm the double bottom and it's target would be around $5430 as stated below. 1D RSI is just now attempting to push out of oversold once more. As pointed out last week, bullish divergence had been forming on it over multiple days, so this move up shouldn't be a surprise to anyone. The 4H chart shows price sitting just under the McGinley Dynamic. As always, a close above it increases the odds of continued upward momentum.
Friday, I also mentioned how this move down could be printing a double bottom. This pattern won't be confirmed until we see the daily close above the swing high at $4409. So, until then, it is just a possibility. The target based on that pattern would be $5430, which takes price right up to resistance. What happens after that depends on supply and demand. As long as demand is greater than supply, price will press through that level which would bring up the 2018 TR as the target. If price cannot do this, then we will continue looking lower for the targets mentioned throughout last week's other analyses.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
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.