Bitcoin Wave B Correction Imminent?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
On the hourly analog Bitcoin Bitfinex chart, there’s not a whole lot to update over the past 24 hours here as price has pretty much gone sideways. I’ll make this quick, since most of my work went to some other analysis today.

I have put a blue rectangle on the chart which represents a range of around $150 from $6,411 to $6,262. Wherever price breaks out of the rectangle from here should travel at least $150 before regrouping.

My target from yesterday at the top of that potential B corrective Elliot wave would be $6,561 and $150 from that breakout point at $6,411. I would think if price did break-up to that level it might be short-lived as there are several EMAs coming down across the snapshot and the black 200 hour EMA should provide strong resistance.

Price right now is about to breakout of a pennant which is wedged between those pink lines, so don’t be surprised if the move upwards happens in the next few hours. I don’t think price will breakdown because the bulls have been putting up a strong resistance below that pink bottom side line of the pennant .

The RSI is looking good now too as the indicator made a higher low from on that price spike down at 19 EST yesterday and has created bullish divergence . I have underlined that trend with a pink line on the indicator as well.

The MACD has been steadily climbing the past few hours, back to the zero bound where a break of that level by the blue trigger line, could send price higher too.

On the daily analog Bitcoin Bitfinex chart, there’s also not a whole lot to update here as well. I removed the noise of the reverse head and shoulders bottom for today, so we can see the other patterns better.

I added a 21 turquoise EMA here as I think it will help identify key turning points on all the time frames better and you can see how that line is wiggling across the snapshot around $6,530 right now and how that had provided good support for almost 4 days between July 3rd and 6th . If price does not get to the target on the hourly I think that level will be at least tapped in the next 24 hours.

You can also see how the additional leg down last night that created the bullish divergence on the hourly chart, also has now led to a .5 retracement at that green $6,297 level. I still think the target is the bottom of that potential C wave at $6,169, which would converge with the darker green . 618 Fibonacci line and the RSI tapping the pink bullish divergence trend line .

The MACD also looks like its ready to downtrend too and have the blue trigger line bearishly cross under the orange line. The histogram is down-tick as well. Let’s see what happens over the next 24 hours.

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