SaeedSalehinia

Bitcoin (BTC) correction_2

Short
SaeedSalehinia Updated   
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
In the previous analysis of Bitcoin , two major support areas were identified, and we observed how Bitcoin reacted when it reached the first one. Now we can update the chart based on the new candles. Based on the Bitcoin behavior it seems one of two patterns may be forming; a channel (blue) or an inverted wedge (yellow).

Unless some major-big-really good news about cryptocurrencies/ Bitcoin occurs or some huge geopolitical changes happen, I think Bitcoin's overall direction is still in a downtrend direction and this uptrend wave is a corrective one. We have to wait for Bitcoin to reach the target area which is 28-29K and see what will happen there. Bitcoin will (have to!) visit the 18K support area again.
Comment:
The break has happened. Have to wait and see how waves unfold.
Comment: Be very careful; the market smells like blood. There might be a sharp uptrend or downtrend move.
Comment:
The last correction wave ended at the 0.5 Fib level. Let's see where the current correction wave ends. The 0.382 or 0.5?
Comment:
The correction wave finished near 0.382 and the triangle pattern broke downward. As said before, Bitcoin has to visit the 18K area again.
Comment:
Bitcoin is going down along a downtrend line. If this line breaks, there could be a minor uptrend wave.
Comment:
So, the minor uptrend happened as stated in the above comment. How far this uptrend wave can go? These two analyses show the possible resistance areas. If this major downtrend is happening in a channel, the upper line of the channel is the resistance. Else, the major downtrend wave can be seen unfolding in a Fibonacci Fan; thus the Fans can act as resistance.
Comment:
Something like this might happen. Lets see what happens!
Comment:
BTC analysis is still in place. BTC has reached an area where two possible moves are more likely to happen. If BTC wants to break the support area below, it has to do in one big (or maybe two big) downward candle. Else, BTC will oscillate above this area then break the downtrend channel. Lets see which will happen.
(I think the former is more likely)
Comment:
A divergence between RSI and BTC price has formed. Lets see if it can break the downtrend channel line.
Comment:
Also, last time BTC reacted to the channel upper line, a triple 1-2-3 wave have formed. Is the same formation going to happen? Lets see.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.