With price divergences in the daily and hourly charts suggesting a correction of the rally is due, we see an interesting situation playing out with BTC in the weekly chart.
A critical support level exists at around $18.4k that, if broken below, eviscerates the bullish case for a continuation of the rally to a higher-high and instead, opens the doors to a new bear market low.
This is because we have an 5-3-5 Elliott Wave count so far from the $15.5k low, that could either be the conclusion of an ABC correction, or waves 1, 2 & 3 of a 5 wave impulse higher. The outcome is not resolved.
This gives rise to the potential for two very different scenarios as indicated in the chart at the top by the Bullish and Bearish Case labels.
What do you think? Is it all-in bullish or time for a pause to watch for a resolution?
A critical support level exists at around $18.4k that, if broken below, eviscerates the bullish case for a continuation of the rally to a higher-high and instead, opens the doors to a new bear market low.
This is because we have an 5-3-5 Elliott Wave count so far from the $15.5k low, that could either be the conclusion of an ABC correction, or waves 1, 2 & 3 of a 5 wave impulse higher. The outcome is not resolved.
This gives rise to the potential for two very different scenarios as indicated in the chart at the top by the Bullish and Bearish Case labels.
What do you think? Is it all-in bullish or time for a pause to watch for a resolution?
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