Bitcoin: Alternative Bullish Elliott Wave Count 1D (May 29)

X Force Global Analysis:


In this analysis, we look at an alternative bullish perspective using Elliott wave counts.

Analysis

- In our previous post, we have counted elliott impulse waves leading to a completion of the fifth wave at the 10k resistance
- Elaborating on this idea, in lieu of seeing a textbook elliott corrective wave (abc), we are starting to see a possible case for an elliott triangle wave (abcde) count
- As demonstrated in the chart, we have managed to secure the 0.236 fibonacci support levels, with bears failing to break below 8.8k regions
- We have seen the formation of a hidden bullish divergence, with the formation of higher lows on the price, and lower lows on the Relative Strength Index (RSI)
- The hidden bullish divergence has played out to complete wave D
- We are also seeing strong signs of the uptrend remaining intact, trading above the ichimoku cloud
- Interestingly enough, it's likely that we test the ichimoku cloud support, should wave E play out accordingly
- Prices have also temporarily managed to break and close above the 20 Simple Moving Average (SMA)
- While the 200 SMA is not as accurate as it once was, prices are currently trading above it, and the 200 SMA is still a good indicator of strong support

Market Sentiment:

Long short ratios are at 73 to 27, with still significantly more long positions than shorts. The market sentiment is extremely bullish, as we have managed to secure the 8.8k support.


What We Believe

While there is a plethora of evidence to support a bullish breakout, we believe that confirmation for a bullish rally will only be provided after we see a break and close above 10k-10.5k levels, depending on the strength and momentum of the trend.

Trade Safe.