MuffyPuffy
Long

Bitcoin formed a reversal pattern. Aiming for the uptrend now?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
The most of us expected the bottom at 8000$.
Unfortunately, we dropped lower to a price nearby 6000$.
The rebounce was strong, which is good, because we see a strong support there.
On the way down, we formed a clear nice Elliott Wave and now we have an ABC correction to a price nearby 9500$.

Fortunately, we formed a reverse Head and Shoulders pattern, which is a strong sign of a reversal.
If we break the red longterm trendline nearby 9600$, we should be in an uptrend again.

Overall it's looking good, but be cautious!
Comment:

We have currently an interesting situation formed.
IF we assume that we are in an Elliott Wave correction, we can expect to cross the red downtrend line.

Wave 2 retraced to 0.382, thus wave 4 retraced stronger to 0.5.
Furthermore we have a picture perfect 1:1 extention of wave 3. If that's the case, wave 5 is normally aming for a 1.68 extention.
That would bring us obove the red line.

Moreover, we are on the edge of the 1h Ichimoku cloud, we are oversold on the Stoch RSI and the MACD is contracting for a minor uptrend.
That being said, a rebounce is likely.

BUT, it could be also just an ABC correction and we go down further now.
We still need a confirmation either way!
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out