ElliotCM
Long

Bitcoin about to surge up, retracement before going long!

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

Past Trend

Bitcoin has finally passed through the bearish market and is now in the clear for a bull run, the entire crypto market as of now is seeing green across the board for the second time within a 7 day time frame. Bitcoin has also crossed all 3 moving average time frames that which I typically use (25,50 & 100 periods). This is all extremely positive indications for Bitcoin - indicating that the bearish run from the highs of 24th July 2018 has finally ended and that it is time to start looking for long positions in the market.

Price Targets

We should be looking for Bitcoin to retrace to the ~$6400 range before entering a long position for the ride up to the next Fibonacci level ($7260), a solid 11.52% from the intended entry level of $6479.9. Do keep in mind that resistance will be encountered on the wave up at the $6794.4 range (indicated by the red rectangle ).

RSI

RSI is currently sitting at the 67.59 mark - right below the overbought level. Thus validating the retracement to the ~$6400 levels before our 5th wave up to the intended price target of $7260. We can also suspect that RSI levels might bounce off the RSI high of July 17th 2018 (4 Hour chart) when heading into wave 5.

Wedge

Price broke out of the wedge to the resistance levels of $6794.4 and we should expect there to be some resistance continuing forward in the market. Price could retrace back within the wedge before making another attempt on the ceiling, before breaking up toward the ~$7200 range.

Momentum

As of now, Trix is looking highly favourable for a long position having all four averages having crossed the baseline into an uptrend momentum range. Keep in mind the wedge surrounding the averages, having formed from the low of 18th August 2018. We can expect momentum to slow down temporarily over the next 2 days whilst ramping up to take out resistance at the ~$6800 level.

Elliott Waves

Price action has completed wave 3 within the past 4 hours and we should expect wave 4 back down to the ~$6400 range over the next 2 days before continuing back upward. Wave 5 should take us to the $7260 mark before retracement and sideways movement in an ABC pattern.

Things to keep in mind

Price could continue moving up (then wait for next retracement down before entering position).

Otherwise

Entry - $6470
Price Target 1 - $6794.40 | %4.37 | (Fibonacci level 1)
Price Target 2 - $7260 | %11.57 | (Fibonacci level 2)

Overview

Bitcoin looks like it's about to embark on its bullish run for the first time in a month, which could be the beginning of the way back to $20,000 (fingers crossed). Look to enter after the retracement, either when it is back down to the ~$6400 range, or after it has moved up further and retraced (unlikely).

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ElNOIV

Comments

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