Good morning, traders. Not much happened over night. Price bounced out of demand at $4778.59 yesterday and is currently attempting to push through supply. A move above this supply level would make a case for bullish continuation of the upward trend before further correction, especially if price exceeds $5100 again. In that case, this small and short retrace would've most likely been subwave 4 of what I believe is wave 3. That would have us expecting price to target the $5500 level at least, with the possibility of attacking the November 18th swing high of $5658.47, before completing wave 3. As those of you who follow my daily videos are aware, that supply at $5500 has been the target that I have consistently suggested is most likely. These current highs align with other pattern targets we have discussed over the past two months as well. All this congestion of targets resulting from the accumulation below makes preciseness difficult until we see definitive movement from here, whether that be up or down.
All that being as it is, the 15 minute chart has price printing an ascending wedge which is generally bearish (i.e. price falls through wedge support). That would have price targeting $4830 based on the height of the pattern. As shown, price would hit the small yellow demand just above the larger, green demand zone. It also puts price at the descending channel's EQ. I am not certain just how valid the channel is, but it currently aligns with swing highs and lows, giving it some added weight. Furthermore, price is at the HVN so a failure to continue through it could result in an accelerated drop like the one seen on April 3rd would likely have price bouncing off the channel support and confirming the flag while hitting our initial target around $4500. RSI on the 15 minute chart has printed an ascending channel whose support it has now fallen through, suggesting downward pressure on price, at least in the near term.
Price on the 4H chart continues to be supported by the 21 EMA for now but is showing possible weakness at the descending channel's resistance. While my initial target is the $4400-$4500 range, VPVR shows a large gap down toward $4150 which aligns with my warnings about the possibility of seeing price fall toward that level. As I have stated numerous times, whether price holds at $4400/$4500 or finds support at ~$4000 depends entirely on how much demand shows up. The FOMO was large in the run up to $5000 a few days ago. Many people FOMOed in at $5000+ and are now at break-even or underwater. I would venture that a majority of them have weak hands, meaning any significant move down could very well trigger them to sell. The much more significant support begins around $4150 and the 4H pivot remains at $4025. I will be watching 4H RSI to see if it breaks through its descending resistance after having recently fell out of the ascending wedge. It bounced recently off support at 57. Stoch RSI on the 4H is just now attempting to push out of oversold as well.
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.
All that being as it is, the 15 minute chart has price printing an ascending wedge which is generally bearish (i.e. price falls through wedge support). That would have price targeting $4830 based on the height of the pattern. As shown, price would hit the small yellow demand just above the larger, green demand zone. It also puts price at the descending channel's EQ. I am not certain just how valid the channel is, but it currently aligns with swing highs and lows, giving it some added weight. Furthermore, price is at the HVN so a failure to continue through it could result in an accelerated drop like the one seen on April 3rd would likely have price bouncing off the channel support and confirming the flag while hitting our initial target around $4500. RSI on the 15 minute chart has printed an ascending channel whose support it has now fallen through, suggesting downward pressure on price, at least in the near term.
Price on the 4H chart continues to be supported by the 21 EMA for now but is showing possible weakness at the descending channel's resistance. While my initial target is the $4400-$4500 range, VPVR shows a large gap down toward $4150 which aligns with my warnings about the possibility of seeing price fall toward that level. As I have stated numerous times, whether price holds at $4400/$4500 or finds support at ~$4000 depends entirely on how much demand shows up. The FOMO was large in the run up to $5000 a few days ago. Many people FOMOed in at $5000+ and are now at break-even or underwater. I would venture that a majority of them have weak hands, meaning any significant move down could very well trigger them to sell. The much more significant support begins around $4150 and the 4H pivot remains at $4025. I will be watching 4H RSI to see if it breaks through its descending resistance after having recently fell out of the ascending wedge. It bounced recently off support at 57. Stoch RSI on the 4H is just now attempting to push out of oversold as well.
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.