Good morning, traders. Stragglers are still FOMOing in on their buys which has buoyed price overnight. While there's always the possibility that price could continue up from here, it still appears most likely that we will get a retracement as discussed yesterday. Price has printed an ascending broadening wedge since yesterday. The target based on this pattern is $3725-$3740, depending on where price drops through the support. The H4 chart suggests that price may only fall as far as $3740-$3780. This latter target aligns with a retest of the 2.5 month descending channel's resistance as support. It would also most closely align with the expectation of retracement for a 4th wave.
If price is working itself into a 4th wave, as expected, then my current expectation is to see a 5th wave head toward the uppermost target box ($4350-$4425) below the ATH descending dashed resistance line. This target is based off the height of the large descending channel and finds confluence with the supply zone, the previous H4 R5 pivot, and the 161.8% fib extension off waves 1-3. This is subject to change as price develops, however. It is possible that we could see price stall out between the two horizontal blue lines ($4112-$4235) that denote the previous swing highs, and complete wave 5 there, so I have included a target box in that area as well. Traders should use caution in this area. A solid close above $4235 on the H4 or higher TF would signal overall bullishness. There is a slim chance that increased FOMO could have price targeting as high as $4800/$4900 on that last push, but that doesn't appear very likely at this time.
H4 RSI has continued to print a solid ascending channel, and a retracement followed by one last leg up as suggested above should be able to be accomplished within that channel. Ultimately, I do not want to see price closing below the $3500 level. I have drawn two Modified Schiff Pitchforks on the charts as well. These should provide the expected support and resistance as price moves. Failure of them to support price suggests a new trend downward while failure of them to restrain price suggests a stronger uptrend in the making. As mentioned yesterday, price has not broken through the large symmetrical triangle on Bitfinex, though it has on Bitstamp, so I have removed it at this time as it is likely not very significant.
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.
If price is working itself into a 4th wave, as expected, then my current expectation is to see a 5th wave head toward the uppermost target box ($4350-$4425) below the ATH descending dashed resistance line. This target is based off the height of the large descending channel and finds confluence with the supply zone, the previous H4 R5 pivot, and the 161.8% fib extension off waves 1-3. This is subject to change as price develops, however. It is possible that we could see price stall out between the two horizontal blue lines ($4112-$4235) that denote the previous swing highs, and complete wave 5 there, so I have included a target box in that area as well. Traders should use caution in this area. A solid close above $4235 on the H4 or higher TF would signal overall bullishness. There is a slim chance that increased FOMO could have price targeting as high as $4800/$4900 on that last push, but that doesn't appear very likely at this time.
H4 RSI has continued to print a solid ascending channel, and a retracement followed by one last leg up as suggested above should be able to be accomplished within that channel. Ultimately, I do not want to see price closing below the $3500 level. I have drawn two Modified Schiff Pitchforks on the charts as well. These should provide the expected support and resistance as price moves. Failure of them to support price suggests a new trend downward while failure of them to restrain price suggests a stronger uptrend in the making. As mentioned yesterday, price has not broken through the large symmetrical triangle on Bitfinex, though it has on Bitstamp, so I have removed it at this time as it is likely not very significant.
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.