ElliotCM

Bitcoin trading possibilities for the next 48 hours.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
BITFINEX:BTCUSD

Past Trend

Bitcoin has moved clear of bearish sentiment earlier in the week, however, is finding difficulty passing on up through the resistance ceiling of $6780. Bitcoin is still sitting above the 3 moving average periods of 25,50 & 100, which is a good indication that the bear run has concluded and we are now in a sideways market which could either return to the bearish trend or reverse to the bull side.

Price Targets

Depending on the direction of the market from this point there are different price targets to look out for. In the bearish scenario, we should look for the price to retrace to about the $6506.30 mark before making a decision on entry/position. Whereas, in the bullish scenario we should be looking for price to hit the target of $7142.30, keep in mind that entering a long position now would be a bad idea (seeing that price is right under the resistance ceiling). A break order for upward movement would be the wiser choice.

RSI

RSI is currently at 58, however, it seems that we are losing steam in volume and momentum. Although not overbought the market is in the means of making a direction for the short-term - rendering RSI to be less useful in this scenario.

Wedge

Price is currently in an ascending wedge formed from the low of the 13th of August 2018 - to the current time. There has been some difficulty in gathering volume and momentum to break the resistance ceiling and traders should be careful about entering a position for either direction now. Waiting for either a break, up past resistance or for the price to retrace once more should be the motive in this situation.

Momentum

The Trix indicator is pretty unbiased in this scenario, displaying momentum that is pretty flat - the market could move in either direction at this point. Once again we should wait for further development in price before making a decision on entry/position.

Elliott Waves

Price is currently in wave 4 but is struggling to break upward for the 5th wave. if price fails here and retraces our 5th Elliott Wave will be invalidated and the cycle will reset/move into sideways motion.

Things to keep in mind

Price is stuck under the ceiling
Highly risky to enter a position now
Wait for movement in either direction (break order for bulls, and limit order for bears after retracement)



Overview

The market is relatively dead at this current time, with the price being stuck under the resistance ceiling of $6792.50. If you're looking for a trade you should wait for either the retracement back down to support in the wedge or place a break order for the upward break (if we get enough bulls).

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ElNOIV

Comments

So place a break order (buy) isn't like trying to go against the market trend?
Reply
ElliotCM Ne07hekin6
@Ne07hekin6, Well I would say we are clear of the bear trend in the mid-term. If you place a break order (buy) and whales come in you could net a good ~3%+ profit.
Reply
Ne07hekin6 ElliotCM
@ElliotCM, I think i would wait to see if the daily candle is red or green tomorrow, not so bullish this time btw. Cheers.
Reply
ElliotCM Ne07hekin6
@Ne07hekin6, Yea I did mention waiting for the next move would be the wisest, but for those that are greedy/optimistic :P
Reply
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