Hello all and welcome to this long overdue update on BTC. A few things have changed since my last chart. I'm currently updating the style and layouts of my chart and have not settled on anyone presentation choice.
The resistance and support levels have been redrawn in orange horizontal rays, the red triangle was removed - as BTC went for an Elliot wave move.
I've adjusted the Elliot wave time frame the target are still the same 12k, 11k, then up to about 13k.
I've also added a cup and handle structure that has been sitting there the whole time, zooming out gives you a new perspective and let's you see longer term moves. This cup and handle is currently on the handle stage. The cup and handle will have another small re-dip after the formation of the handle something that is possible in traditional cup and handle patterns and does not invalidate the pattern, in fact this small redip corresponds perfectly to the Elliot wave structure we had previously posited on.
I added an uptrend channel! This is great news as we are now seeing strong and steady growth which is SUSTAINABLE! Evidence for this upward channel is very strong as BTC has hard a hard time making it's way up recently to complete the cup and handle/Elliot wave 3. The channel trend-line is extremely reactionary, and if we can get above it, will serve as strong support.
My longer term target for BTC is 15,5k at least and a possible 17k to which the cup and handle points to. This should all happen inside the upward channel and be rather sustainable!
The RSI is very close to 70 right now but still safe and if it can hold there for a while longer we could possibly make our wave 3 target.
Addressing the blue lines and the red line. I've drawn a downward channel in which bitcoin was trading down all the way for the all time high. It had stayed and challenged this channel a few times. Only now have we broken out of it - blue lines - ON THE LINEAR SCALE. On the log scale which is not shown here bitcoin has not broken out of the downward channel. It is currently just under and if the log scale is activated on my chart corresponds perfectly with the wave 3 peak and the middle trend-line for the upwards channel.
This is all not trading advice and I am not a financial advisor.
Best of luck,
X
The resistance and support levels have been redrawn in orange horizontal rays, the red triangle was removed - as BTC went for an Elliot wave move.
I've adjusted the Elliot wave time frame the target are still the same 12k, 11k, then up to about 13k.
I've also added a cup and handle structure that has been sitting there the whole time, zooming out gives you a new perspective and let's you see longer term moves. This cup and handle is currently on the handle stage. The cup and handle will have another small re-dip after the formation of the handle something that is possible in traditional cup and handle patterns and does not invalidate the pattern, in fact this small redip corresponds perfectly to the Elliot wave structure we had previously posited on.
I added an uptrend channel! This is great news as we are now seeing strong and steady growth which is SUSTAINABLE! Evidence for this upward channel is very strong as BTC has hard a hard time making it's way up recently to complete the cup and handle/Elliot wave 3. The channel trend-line is extremely reactionary, and if we can get above it, will serve as strong support.
My longer term target for BTC is 15,5k at least and a possible 17k to which the cup and handle points to. This should all happen inside the upward channel and be rather sustainable!
The RSI is very close to 70 right now but still safe and if it can hold there for a while longer we could possibly make our wave 3 target.
Addressing the blue lines and the red line. I've drawn a downward channel in which bitcoin was trading down all the way for the all time high. It had stayed and challenged this channel a few times. Only now have we broken out of it - blue lines - ON THE LINEAR SCALE. On the log scale which is not shown here bitcoin has not broken out of the downward channel. It is currently just under and if the log scale is activated on my chart corresponds perfectly with the wave 3 peak and the middle trend-line for the upwards channel.
This is all not trading advice and I am not a financial advisor.
Best of luck,
X
Comment:
Forgot to mention that BTC actually failed in big part because it was rejected by the downward trend-line - VISIBLE ONLY ON LOG SCALE.
Comment:
We were finding beautiful support at the 10,4 level now seems unexpected news from the SEC has pushed the price down out of the channel and is causing FUD! I'll update the chart soon - we might be starting to forma bear flag!
MACD has crossed bearish on the 4h yet is still above the 0 level.
This could indicate a bounce to the upside sometime soon, hopefully we'll stay in the uptrend channel or else I'm turning bearish for the short-term anyway.
This will be the ultimate test of a definitive reversal for BTC - ie the test of the upwards channel.