Jumping off my previous post, i did call a $10k Target for Bitcoin to finally complete the parabolic move from the low of 3100 in Dec.
The current consolidation (ABCDE flat pattern) is a wave 4 breather for the next leg up to complete the wave 1 of the macro trend.
Having gotten a sharp dip in wave 2 (ABC correction) i did expect a shallow wave 4, hence the bullish flag pattern/ triangular formation which is a continuation pattern.
The little spike in volume each time price test the trendline support of the symetrical triangle and the genenal decline in volume within this area is an indication of seller exhaustion which is also a bullish indicator supporting a breakout to the upside.
I do expect a pull back from the 8200 level to retest the trendline support of the symetrical triangle at 7800-7600 area to complete the correcetive consolidation before the breakout. This is where i would be looking to go long.
However bear in mind that so long as shorts continues to pile up at our target area of $10k, we could see a continuos short squeeze that could push price ultimately to the 11800 area before the much expected wave 2 begins IMO
Finally i expect a maximum wave 2 correction of the macro trend to the 0.618 fib retrace at 6000-5800 before wave 3 finally begins.
NOTE : This is not an investment advice. Keep in mind that TA is not an exert science, these are mere assumptions based on the data/information available on the chart/ market. Always do your own research
The current consolidation (ABCDE flat pattern) is a wave 4 breather for the next leg up to complete the wave 1 of the macro trend.
Having gotten a sharp dip in wave 2 (ABC correction) i did expect a shallow wave 4, hence the bullish flag pattern/ triangular formation which is a continuation pattern.
The little spike in volume each time price test the trendline support of the symetrical triangle and the genenal decline in volume within this area is an indication of seller exhaustion which is also a bullish indicator supporting a breakout to the upside.
I do expect a pull back from the 8200 level to retest the trendline support of the symetrical triangle at 7800-7600 area to complete the correcetive consolidation before the breakout. This is where i would be looking to go long.
However bear in mind that so long as shorts continues to pile up at our target area of $10k, we could see a continuos short squeeze that could push price ultimately to the 11800 area before the much expected wave 2 begins IMO
Finally i expect a maximum wave 2 correction of the macro trend to the 0.618 fib retrace at 6000-5800 before wave 3 finally begins.
NOTE : This is not an investment advice. Keep in mind that TA is not an exert science, these are mere assumptions based on the data/information available on the chart/ market. Always do your own research
