Bitcoin Dump is Actually Good for $17,000 Reality in Future
With halving approaching in less than two days, Bitcoin seemed poised to break through 10,000 with relative ease. Until it didn't. Last night, Bitcoin experienced a nearly 20% meltdown, unofficially signaling the end of the rally off the March lows. A few day's ago I posted that Bitcoin could be heading to 10,300, as that was the measured target for the cup and handle pattern. Although price did not meet the target, the expected psychological resistance of 10,000 did its part by strongly rejecting further momentum to the upside.
Despite the sell off, I am encouraged. I do believe there is plenty of upside for Bitcoin later in the year. Let's get right to it and take a look at some charts.
Building a Case to BTFD
Is it time to BTFD? In my opinion, not yet. First, the chart below is a daily view of Bitcoin. Momentum is now firmly in decline. The magnitude of the sell off is forcing the MACD to converge to the downside.
Although, this does not necessarily signal immediate downside in the short term. Bitcoin does not make it easy for bears too short. I do expect price too stabilize. Low target for the current move are 7400 support, followed by a relief rally.
On the chart above I highlight strong support at around 6400. Conveniently it coincides with the 50% retrace of the entire move. I labeled the 61.8% retrace level as well because it remains a popular retracement level for wave 2 pull backs (no Elliott wave shown).
The last chart I found very interesting. I know the inverse head and shoulder meme's are going to be out in full force in about a month. So, I am getting ahead of them!
Notice how the channel fits. I really like seeing this in inverse head and shoulder patterns. Maybe setting bids near the low of the channel wouldn't be such a bad thing. If this is a true inverse head and shoulders, the right shoulder could take approximately 5 months to develop. I'll be keeping an eye on this channel and pattern.
I hold the belief that Bitcoin has a greater chance of heading to 17,000 short term than breaking the March low. That is why I intend to buy the dip. Just not yet. Long term, bullish. Currently....Bias: Bearish.
Leading Indicator
For about two years I have been talking about Bitcoin as a leading indicator for the stock market. Therefore, last night's sell off should be a warning sign for stock market bulls. Could it be really that simple? I mean both crypto and stock markets were approaching key levels of resistance...hmmm.
It will be very interesting to see how the market reacts this week. I hope you all have a great end to your weekends!
Despite the sell off, I am encouraged. I do believe there is plenty of upside for Bitcoin later in the year. Let's get right to it and take a look at some charts.
Building a Case to BTFD
Is it time to BTFD? In my opinion, not yet. First, the chart below is a daily view of Bitcoin. Momentum is now firmly in decline. The magnitude of the sell off is forcing the MACD to converge to the downside.
Although, this does not necessarily signal immediate downside in the short term. Bitcoin does not make it easy for bears too short. I do expect price too stabilize. Low target for the current move are 7400 support, followed by a relief rally.
On the chart above I highlight strong support at around 6400. Conveniently it coincides with the 50% retrace of the entire move. I labeled the 61.8% retrace level as well because it remains a popular retracement level for wave 2 pull backs (no Elliott wave shown).
The last chart I found very interesting. I know the inverse head and shoulder meme's are going to be out in full force in about a month. So, I am getting ahead of them!
Notice how the channel fits. I really like seeing this in inverse head and shoulder patterns. Maybe setting bids near the low of the channel wouldn't be such a bad thing. If this is a true inverse head and shoulders, the right shoulder could take approximately 5 months to develop. I'll be keeping an eye on this channel and pattern.
I hold the belief that Bitcoin has a greater chance of heading to 17,000 short term than breaking the March low. That is why I intend to buy the dip. Just not yet. Long term, bullish. Currently....Bias: Bearish.
Leading Indicator
For about two years I have been talking about Bitcoin as a leading indicator for the stock market. Therefore, last night's sell off should be a warning sign for stock market bulls. Could it be really that simple? I mean both crypto and stock markets were approaching key levels of resistance...hmmm.
It will be very interesting to see how the market reacts this week. I hope you all have a great end to your weekends!
