After the massive uptick to 11400 on Nov 29, we just finished wave 5 and are currently experiencing corrections. However, that does not mean we can't play the bounces within the correction! Right now, Bitcoin is forming a rising wedge, both a small one and a big one. The small wedge will likely break and go down to around 11280, which is the price at the top of the wedge minus the size of the opening of the wedge. Coincidentally, 11280 is also a support level of the bigger wedge and the 0.382 Fibonacci Retracement of wave B (of the second ABC).
Bitcoin should bounce of that level and complete wave W, which is should be a 5-3-5 zigzag. That would make the overall correction a 3-3-5 flat. We a get resistance level of 12130 by taking a 0.5 extension of the 12345 impulse of the ABC correction up (purple one). Not far off, we get a higher resistance level of 12300 from the top line of the bigger rising wedge.
Some may argue that Bitcoin already went through correction and is starting another impulse wave. Although Bitcoin did already go through an ABC correction, but I doubt that's the end of the consolidation. On the RSI we are seeing a bearish divergence, and the big rising wedge means the price will go down. Also, a 24 hour ABC correction seems way too short for such an impulse that took 2 weeks.
Don't be greedy and take your profits at 12130. Don't get FOMO as we can always buy at a better price after the price of Bitcoin dips from breaking out of the rising wedge. We may see a low of $10,000, but it's too early to tell right now.
Bitcoin should bounce of that level and complete wave W, which is should be a 5-3-5 zigzag. That would make the overall correction a 3-3-5 flat. We a get resistance level of 12130 by taking a 0.5 extension of the 12345 impulse of the ABC correction up (purple one). Not far off, we get a higher resistance level of 12300 from the top line of the bigger rising wedge.
Some may argue that Bitcoin already went through correction and is starting another impulse wave. Although Bitcoin did already go through an ABC correction, but I doubt that's the end of the consolidation. On the RSI we are seeing a bearish divergence, and the big rising wedge means the price will go down. Also, a 24 hour ABC correction seems way too short for such an impulse that took 2 weeks.
Don't be greedy and take your profits at 12130. Don't get FOMO as we can always buy at a better price after the price of Bitcoin dips from breaking out of the rising wedge. We may see a low of $10,000, but it's too early to tell right now.