Price is now hovering above $6,300 after being floored to recent low of $6,260, which is close to a critical Fibonacci level (23.6%) over a 21-day retracement period – a level where reversals usually take place. This consolidation is necessary for Bitcoin to recharge its momentum prior to breaking above former high.
4-HOUR CHART - TECHNICALS
Looking at the 4-hour chart above, we can see that is back to sub-zeroline but slowly turning . is officially in the oversold region while has bounced off a little and looking healthy.
4-HOUR CHART –
With applied, we can see that price is actually hovering above Senkou Span B or the bottom of the cloud which currently acts as strong support. Even though price could just take off from here, I would be more confident of getting sustainable trend reversal from Bitcoin if price could revisit the Fibonacci level (23.6%) at $6,232.70 once more as illustrated.
All the key levels, including trade entry and exit, are available in the main hourly chart of this post (the big chart above). I chose hourly this time so that traders can see the price action moving along my projected trend more intimately and react swiftly on a negative variation as needed.
Happy trading, my friends!
Let's get on with today's analysis. I see $6175 now and that means our Stop Loss has been triggered. So what are our options now? Well, my friends, I have only good news and more good news. The first good news is that our Inverse Head and Shoulders pattern remains valid so a reversal is still in the cards. The other good news is that we are approaching the end of a very large triangle on the weekly chart so a breakout from here will send us straight to $8,000. Other factors will need to be properly re-evaluated when I get back to my trading station tomorrow. Happy trading!
If you are a day trader, things may look bad for you right now. On the other hand, if you are a long term bull, you should probably be drooling over the price we are in. Although looking at the 4-hour chart, we could get another leg lower but the way I look at it, the difference is not much. Alright, I am calling it a day.
Good luck, my friends!
Forecast (July 14)
In this forecast, I predicted the 3rd wave to end at around 7100, a level to take some profit, before continuing to the 5th wave that ends at around 7450.
Actual (July 18): In actual, the 3rd wave ended much lower but the 5th wave ended just as predicted. This is a big win for us as we not only managed to take profit at 7100 but 7450 as well.
To my followers, thank you for your patience and confidence in me. You deserve this profit.