We believe that end the major correction from the last year bullrun.
The bounced off from the triangle is what we look at to be the beginning of our new IMPULSIVE WAVE.
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For this setup to remain valid price must not close below red dotted line(6283).
Anything below this level means we can see a drop back to 6100 zone, where i have black dotted lines.
From our wave counting we already achieved completion of wave 3 around 6540/6550 area.
We expect a retracement to form the base of our wave 4 which will be around 6435/6460.
Immediate Support: 6670, 6650
If that fail then next support lies between: 6512, 6485
Immediate sell target Remain: 7000/7100 - 7500/7600
Two outcome are possible.
1. Breaking up to test 7800$ and if that level break we will see BTC hitting our long term target of 8300$ or probably hitting 8500$.
2. Breaking down to form wave 4 which is expected to terminate around 7035-6980 or finally at 6840.
Anything below this above range will lead to BTC changing its course for a possible retest of 6000$ zone again. But I think the chance is very slim.
Level to watch as support:
Level to watch as Resistance:
STOP LOSS TO EXIT BUY: 6710
This signal the beginning of reversal and our target for reversal ranges from 7270 to 6775 area.
Level to watch:
I spotted 3 safe levels( from this level if we have bounce it will signal for continuation of the current trend and target will be 8500/8800)
1. 7270 Been the bottom of the range and at same time 23.6% fib retracement level of previous move(wave 3)
2. 7045 that is where price will form Right Shoulder for the ISHS and at same time 38.2% fib retracement level of the previous move(wave 3)
3. 6830/6770 these level equivalent to 50% fib retracement level of wave 3, and at same time it was the top level of the Ascending triangle broke out from, so a possible re-test may occur.
Other level to watch are:
Anything below above mentioned level means we will head back down to re-test 6000$/5700$ again.
But overall BTC look good.
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