Good morning, traders. I figured we could step back and look at the larger patterns and channels in play today. This 1H chart shows us that price has printed, what appears to be, a flag. If so, then the target based on the height of the flagpole is around $19150 on this Coinbase chart. That puts it just below the ATH. I've been talking a lot about different possible EW counts but, as you've seen, I have struggled with the idea that a wave 5 would target $30K+ right now (mostly due to how high it would have to go to retrace properly in terms of the ATH. Personally, I would be much more comfortable with price completing the first wave up just prior to the ATH, pulling back for wave 2, and then pushing through on wave 3. That would most likely mean that this recent pullback was wave 4 and that we are possibly on wave 5 right now. Completing the 1st wave at the ATH gives Bitcoin's price a lot of room to move up before the 5 waves are complete. At this point, it would also give alts a chance to run. Many of them appear to have been capitulating this past month and CryptoTwitter is "sure" that alts are dead and never coming back. Sounds very similar to the sentiment when Bitcoin neared $3100. So, as I have been, I will continue to play the market as it moves and entertain the various possibilities until they no longer make sense based on price action.
The 1H RSI shows a recent bearish divergence that appears to have played out, as well as another potentially shorter bear div at this current juncture. We often see continual divs playing out smaller and smaller when price momentum is attempting to overcome bids or asks. In this case, it would be bullish momentum attempting to overcome the sell orders. I am watching for RSI to exit through the purple resistance to signal price is likely continuing up.
We can see that price is butting up against the ascending channel's EQ. A close above this EQ would be bullish since it would put price in the upper half of the channel and should bring the channel resistance in as the next target. If you're trading pivots, then the R2 sits at $13475 and the R3 is at $14875. Price is also clearly above the blue TR and remains above the 21 EMA. Stoch RSI has room to fall further, but as long as the 21 EMA/descending channel resistance holds as support price should push ultimately push higher.
The red ascending triangle has a target of $14410 and, of course, the flag/descending channel has a target of the R4 pivot at $16330 based on the height of that channel. A close above the June 26th swing high at $13868 should have everyone flipping long which makes these larger pattern targets likely. The 4H RSI is nearing a break into overbought and daily RSI is printing a rather large bearish divergence if price moves above that June 26th swing high. However, price action above the swing high will dictate how/when that div will play out. Daily Stoch RSI has a lot of room to the upside and RSI is below overbought at this time.
As I was just about to publish this, I noticed that price bounced off the descending channel resistance and the candle spread is currently sitting back above the 21 EMA. We still have another 40 minutes left in this candle, but I'd like to see it close like this or better. We need to see price push through the grey supply zone.
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Be sure to hit the "thumbs up!"
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.
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. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
The 1H RSI shows a recent bearish divergence that appears to have played out, as well as another potentially shorter bear div at this current juncture. We often see continual divs playing out smaller and smaller when price momentum is attempting to overcome bids or asks. In this case, it would be bullish momentum attempting to overcome the sell orders. I am watching for RSI to exit through the purple resistance to signal price is likely continuing up.
We can see that price is butting up against the ascending channel's EQ. A close above this EQ would be bullish since it would put price in the upper half of the channel and should bring the channel resistance in as the next target. If you're trading pivots, then the R2 sits at $13475 and the R3 is at $14875. Price is also clearly above the blue TR and remains above the 21 EMA. Stoch RSI has room to fall further, but as long as the 21 EMA/descending channel resistance holds as support price should push ultimately push higher.
The red ascending triangle has a target of $14410 and, of course, the flag/descending channel has a target of the R4 pivot at $16330 based on the height of that channel. A close above the June 26th swing high at $13868 should have everyone flipping long which makes these larger pattern targets likely. The 4H RSI is nearing a break into overbought and daily RSI is printing a rather large bearish divergence if price moves above that June 26th swing high. However, price action above the swing high will dictate how/when that div will play out. Daily Stoch RSI has a lot of room to the upside and RSI is below overbought at this time.
As I was just about to publish this, I noticed that price bounced off the descending channel resistance and the candle spread is currently sitting back above the 21 EMA. We still have another 40 minutes left in this candle, but I'd like to see it close like this or better. We need to see price push through the grey supply zone.
_____________________________________________________________
Be sure to hit the "thumbs up!"
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.
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. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.