Bitcoin on a knife's edge.....up or down?
As you can see from my chart I have several indicators I use to see where the market bounces, including the one's on the MACD. I also notice a large rising inverse h&s pattern emerging, albeit the 20 EMA crosses back over the 50 EMA.
This to me is the knife edge for BTC. If you go back previously over the last year, only twice has the 20 EMA dropped below the 50 and risen back up over it shortly after. In nearly all scenarios when this crossover of the 20 below the 50 happens on the 4 hour chart, BTC will drop as a sell off ensues. If it rises back over the 50, the 5th leg of the Elliot Wave is in play and from there we could see a breakout to the 618 retrace level. If the 20 stays below the 50, we could see BTC drop to the 200EMA @ around $8900.00 and then maybe even further to the 786 retrace at around $8700.00 putting the larger right shoulder into play.
Next few days for me is the breaking point on whether to sell or buy. With all the good news about I am thinking it will form the 5th wave but the futures expire on 16th so beware of that also.
Good luck to all in your trades!
This to me is the knife edge for BTC. If you go back previously over the last year, only twice has the 20 EMA dropped below the 50 and risen back up over it shortly after. In nearly all scenarios when this crossover of the 20 below the 50 happens on the 4 hour chart, BTC will drop as a sell off ensues. If it rises back over the 50, the 5th leg of the Elliot Wave is in play and from there we could see a breakout to the 618 retrace level. If the 20 stays below the 50, we could see BTC drop to the 200EMA @ around $8900.00 and then maybe even further to the 786 retrace at around $8700.00 putting the larger right shoulder into play.
Next few days for me is the breaking point on whether to sell or buy. With all the good news about I am thinking it will form the 5th wave but the futures expire on 16th so beware of that also.
Good luck to all in your trades!
Let us see if the sell off continues at this critical level.