So, Bitcoin is now looking increasingly likely that we have confirmed the wave 4 bottom being in place..
As 1 final confirmation/test-> I would like for a re-test now at around +/-43k (We need to test that 40k-43 zone at least once, this is the green line & as the current 20 weekly MA is also around 42k..) this re-test will show us that the market has support and it will confirm the bottom is in place, giving us confidence in this next rally.
Considering how powerful the last wave 3 was, I would watch the momentum indicators like the RSI and MACD and compare them to the 65k top zone. I am expecting an insane rally again with this being a wave 3 of a larger degree wave 5, so we probably will see the RSI and MACD indicators go higher and break top channels before the top is in place as this is indicative when completing and comparing the middle and end of a wave 3 rally.
On the bearish side -> A break below the 28800 lows confirms this wave 4 is coming down to low 20ks and the rally will be postponed by a few months. Anything is possible there. We invalidate the wave 4 around 13,500 so we don't want that breaking, otherwise, we are in a much larger bear market than we thought.
In conclusion, when Bitcoin shows it's starting a mark-up move, just buy and hodl the move.. no point trying to catch the waves...this proves not to work.. rather hodl with a low 2x leverage, ride the wave and look to top up at every 15-20% decline or assess where the wave 2/wave4 20-30% pullbacks are to load up. We know from the 2017s run when things go parabolic you could expect regular large 30%-40% drops.
In conclusion:
-> We looking for a support re-test of around 43k to confirm we have bottomed and this will also confirm an uptrend of higher lows.
-> Areas to watch for consolidation will be around 60k, 80k, 100k-130k, 150k, 200k.
->As soon as we break above 150K IMO things can go parabolic and that's when the blow-off top above 200k can come faster than you think..
-> Bitcoin likes to respect the fib number sequences so these would be 10, 20, 30, 50, 80, 100, 110, 120, 130, 150. 180, 200, 210, 220, 230, 250, 280, 300, 500 and so on..
As 1 final confirmation/test-> I would like for a re-test now at around +/-43k (We need to test that 40k-43 zone at least once, this is the green line & as the current 20 weekly MA is also around 42k..) this re-test will show us that the market has support and it will confirm the bottom is in place, giving us confidence in this next rally.
Considering how powerful the last wave 3 was, I would watch the momentum indicators like the RSI and MACD and compare them to the 65k top zone. I am expecting an insane rally again with this being a wave 3 of a larger degree wave 5, so we probably will see the RSI and MACD indicators go higher and break top channels before the top is in place as this is indicative when completing and comparing the middle and end of a wave 3 rally.
On the bearish side -> A break below the 28800 lows confirms this wave 4 is coming down to low 20ks and the rally will be postponed by a few months. Anything is possible there. We invalidate the wave 4 around 13,500 so we don't want that breaking, otherwise, we are in a much larger bear market than we thought.
In conclusion, when Bitcoin shows it's starting a mark-up move, just buy and hodl the move.. no point trying to catch the waves...this proves not to work.. rather hodl with a low 2x leverage, ride the wave and look to top up at every 15-20% decline or assess where the wave 2/wave4 20-30% pullbacks are to load up. We know from the 2017s run when things go parabolic you could expect regular large 30%-40% drops.
In conclusion:
-> We looking for a support re-test of around 43k to confirm we have bottomed and this will also confirm an uptrend of higher lows.
-> Areas to watch for consolidation will be around 60k, 80k, 100k-130k, 150k, 200k.
->As soon as we break above 150K IMO things can go parabolic and that's when the blow-off top above 200k can come faster than you think..
-> Bitcoin likes to respect the fib number sequences so these would be 10, 20, 30, 50, 80, 100, 110, 120, 130, 150. 180, 200, 210, 220, 230, 250, 280, 300, 500 and so on..
Comment:
On 8 September we have come back to test the weekly 20MA and hit a low of 42850 so we have completed - exactly as my proposed test in "my idea" but what now :) I will post another update shortly with my opinions.
It looks like we have some sort of an accumulation channel forming here between 46,500 and 50,000 and we gaining momentum again and should retest 50k very soon. This is also thanks to Eth going berserk today, Funding rates are shown to be negative for ETH at this moment so we could expect a short squeeze on ETH to pump it back to all-time highs. It will just be a matter of time then until 50k breaks on BTC.
Good luck traders and remember DYOR!
:)