A strong case for a long term 5 wave triangle can be made ( Unfolding on the daily chart as Yellow label ABCDE ) * Triangles tend to unfold with the inner legs in threes ( This has been the case so far from the all time high - Blue labels ABC) * Triangles tend to form as a pause in the greater trend ( If this is the current case - When E down terminates, the trend should head up and break the upper trend line and start heading toward the all time high ) * Important note about E waves - They can break below the lower trend line temporarily before shooting up. E waves can also be short and not necessarily even get to reach the lower trend line. See the recent long term bottom triangle formation on the Gold daily chart ( You will have to load your own chart to check it out or Google images for information on triangles )
** For immediate evidence I would like to see a daily close above $7,000 ** If a reversal in the current trend occurs now and we start heading back toward the low at $3,000 or break that bottom trend line - This theory would be void.
*** On a bearish note The triangle formation of 2018 could also be unfolding now. If this is the case - BTCUSD will be heading lower. ( Top Green trend line )
Agree, we are currently at a critical juncture that could swing either way.
*I would go so far as to say - If we can get a sustainable daily close above $6620, there is a very strong possibility for higher prices near term ( However I'm thinking that the up trend could be limited by the triangle trend line theory I've just proposed - Upper Green would be the first barrier. Then onto the higher Red trend line on my chart)