BTCUSD
Bitcoin had been in a downtrend from June 26, 2019 to December 18, 2019, close to 6 months, and now it seems like it has clearly break out of it. As you can see in the chart, Bitcoin broke above the downward channel and stayed above it for almost 3 weeks now. That is a clear break, and yes, Bitcoin might have bottom at $6,500 USD, and we are probably going higher from here long term.
But Bitcoin, as well as any other tradeable stock, currency, commodity or cryptocurrency don´t go up in straight line, there are many ups and downs. And Bitcoin is up against mayor resistance just above it, the $9,200 USD level, the $9,500 USD level, and the 200 Day Moving Average. And that with the RSI at overbought levels.
To me it looks like the most likely scenario will be for it to pull back down, maybe we make a doble top here at $9,200 USD in the short term and drop back to the most common Fibonacci Level, the 61.8% retracement which lies around the $7,500 USD mark. Or maybe we go a little bite above $9,200 just to break back down shortly after. I don’t see enough volume for it to continue climbing a lot higher from here without a meaningful pullback first to correct the overbought condition.
In terms of Elliott Wave, the preceding correction might be over as a complex Triple Three Correction, elliottwave-forecast...e-three-corrections/ , W,X,Y,X,Z, and a new bullish mid to long term movement might have started. Of which we can see the first 5 move impulse wave higher from $6,500 USD to $9,200 USD, and it looks like we are now making a 3 wave decline, which looks like a flat, could be a regular flat or and expanded flat if we go above $9,200, elliottwave-forecast...elliott-wave-theory/ , of which we already trace wave A, not sure if we finished wave B, and are missing wave C, which could potentially take the price back to $7,500 USD, the most common Fibonacci retracement level.
There are other possibilities, but this is one of them. Not making any recommendations, just stating my views.
Good Luck to You
Trade active:
I’m updating my Elliott Wave Count on Bitcoin, it is basically the same as the old one, except that I’m placing the end of Minute Wave 5 at the $9,570 USD level instead of the $9,188 USD level. From there I will expect Minor Wave 2 to begin, correcting the previous wave, it looks like it already has. I still expect it to go to the 61.8% Fibonacci Retracement, which lies at $7,600 USD instead of $7,500 USD.
Since Minor Wave 1 took 43 days, I will expect Minor Wave 2 to take about the same time, 43 days, which will place the end of it at about Friday March 13, 2020. Mid-March, that is the time where I would expect Minor 3 to begin.
Good Luck to You
Since Minor Wave 1 took 43 days, I will expect Minor Wave 2 to take about the same time, 43 days, which will place the end of it at about Friday March 13, 2020. Mid-March, that is the time where I would expect Minor 3 to begin.
Good Luck to You
Trade closed: stop reached