Hello all, welcome back to the daily analysis about bitcoin. This time I will share my overview of current market condition based on the 4 hour chart.
Continuing my yesterday's analysis about bitcoin, This time I will share to you about the Flag correction pattern which usually occurs in the 4th wave after parabolic moves. I will try to explain the psychology behind it. One of the most used of the flag correction pattern is the 5 correction sub wave that forms a contracting triangle. Usually the bears and the bulls will have a war to defend their own interest. Because of this war which 2 of them have the same power level, the price moves in a sideways with the edge is getting narrower which we know that the edge as APEX where we see a trend confirmation from this area.
The contracting triangle usually occurs at the wave 4 to retrace the wave 3. At current condition, the characteristic of the pattern is very typical as the flag correction wave of the 4th. Beside there is a strong indication that the price will continue it to the upside with the RSI is trending above the 60 level which is the area of bullish momentum.
I will wait for the price to test the lower line of the contracting triangle as the potential end of 5 wave structure which is the end of the potential wave 4 to enter long position. Because at this level ($9000 - $8800), usually opening long will produce a low risk trade. But, if I'm not able to catch the price at the lower line of the channel, a buy at the break out could be considered with tight SL as well.
My bias is bullish for short term and $10000 could be tested in near future.
Continuing my yesterday's analysis about bitcoin, This time I will share to you about the Flag correction pattern which usually occurs in the 4th wave after parabolic moves. I will try to explain the psychology behind it. One of the most used of the flag correction pattern is the 5 correction sub wave that forms a contracting triangle. Usually the bears and the bulls will have a war to defend their own interest. Because of this war which 2 of them have the same power level, the price moves in a sideways with the edge is getting narrower which we know that the edge as APEX where we see a trend confirmation from this area.
The contracting triangle usually occurs at the wave 4 to retrace the wave 3. At current condition, the characteristic of the pattern is very typical as the flag correction wave of the 4th. Beside there is a strong indication that the price will continue it to the upside with the RSI is trending above the 60 level which is the area of bullish momentum.
I will wait for the price to test the lower line of the contracting triangle as the potential end of 5 wave structure which is the end of the potential wave 4 to enter long position. Because at this level ($9000 - $8800), usually opening long will produce a low risk trade. But, if I'm not able to catch the price at the lower line of the channel, a buy at the break out could be considered with tight SL as well.
My bias is bullish for short term and $10000 could be tested in near future.
