Although bitcoin does have an official new ATH, the work isn’t done yet. It was just a tiny wick, with no action or daily close above. Instead we got a huge dump from a flash crash in the major exchanges. Ugh.
After a billion dollar flush of open interest, stops, and orders, and after a day of recovery and simmering, the resistance is still palpable as can be seen from a demarcation trend line that has proven effective for the day in keeping the bulls below 68k.
This trend line arises from a fourth wave triangle of the recovery wave from the bottom of the crash, as seen in the chart.
This presents a scenario in which a new ATH can be punched from the energy accumulated in the compressed triangle trading in form of an impulse out of wave E of the triangle.
The maximal height (green arrow) of this impulse is limited by the size of wave three, as a third wave cannot be the shortest wave, as wave one was a bit longer than wave three.
After a billion dollar flush of open interest, stops, and orders, and after a day of recovery and simmering, the resistance is still palpable as can be seen from a demarcation trend line that has proven effective for the day in keeping the bulls below 68k.
This trend line arises from a fourth wave triangle of the recovery wave from the bottom of the crash, as seen in the chart.
This presents a scenario in which a new ATH can be punched from the energy accumulated in the compressed triangle trading in form of an impulse out of wave E of the triangle.
The maximal height (green arrow) of this impulse is limited by the size of wave three, as a third wave cannot be the shortest wave, as wave one was a bit longer than wave three.
Comment:
It is also possible that the new peak is just a subwave one of smaller degree, because the retrace did not exceed the start of wave five.
In any case this should get resolved within a couple of hours.
In any case this should get resolved within a couple of hours.
Comment:
ETH and some other altcoins are also waiting for this pattern to be resolved, as they have been stuck in the same situation and pattern, when BTC is the clear driver of it all.
Comment:
Here is Ether:
The ETH traders and investors are very eager to grab the 4000 level, having already made past 3900 once.
Comment:
This is still very sluggish. Not much success yet, going north.
Ether has decided to march alone, already closing in on 4000.
Ether has decided to march alone, already closing in on 4000.
Comment:
It is no wonder that BTC was still so sluggish. It turns out that the triangle correction was much larger than I drew it. See new chart. This time it exited with energy from the triangle. We should expect a new ATH soon, I think.
The market has started another way. It simply retraced t the fifth and started a new sequence, it seems.