The price bounced from 6200.00 level. RSI confirmed price reversal. MACD supports downward movement. But the main signal, that we have to take into consideration, should be a bearish divergence. This is a strong trend reversal signal. We must be ready to see further downward movement at least to SMA100. This Moving Average can stop and reverse the market. From this zone we can get a new buy signal. But if the price breaks this strong support line, the market will be able to fall to 5000.00 support zone. It will be logical, because the market is overbought and it will need to correct the previous strong upward movement. If we talk about any other market, this trend reversal signal could be a good trading opportunity. But Bitcoin is too cool and it can jump above 6200.00 and move to 6500.00-7000.00 levels based on fundamental news and support from the buyers. Don't forget about it and be ready to act based on the price action near important levels like 6200.00, 6000.00, 5500.00, 5000.00 and SMA100. When the market gives clear trading signals, I will write how to trade in these zones.
Although divergences are certainly not useless in BTC, I have found that they are often very quickly resolved with a less severe drop. We have not yet hit the long term trendline, which I believe most likely will happen before we see another trend reversal of that magnitude. We might be having a pennant on the 1H developing and in the Elliot wave theory that is always the second last wave in a sequence. Most likely there will thus be another push to 6200 or if it breaks through, an emerging extended wave to 6800 or 7000.
It seems reasonably clear to me that we are still within wave three of this pump since 3000, which makes it likely that we are going to hit the trendline. We have three trendlines of various degrees possibly converging on the 24th or 25th. This indicates to me that we are going up.
I agree though, it is looking very shaky at the moment and it is definitely at a tipping point. We should know more by noon tomorrow.
evandja
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@torjusg, this is what I've been thinking exactly.
Exess17
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Good morning Mr. Lavrov, thank you for another great analysis. In regards of altcoins ETH and LTC I noticed that you are as well as me bullish. Do you believe both coins would remain bullish even if there was BTC sell off based on the distribution of BTC Gold on the 25th of this month? Thank you for your valuable feedback. David
@DLavrov would you please share your opinion on this ? Thanks for your analysis :)
PauloGarcia
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Hello, any news for BTC USD Now?
luigiborla
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it's no senso. The divergence in rsi is very short range compared to those which indicated a real dump. But maynly we are too low to be on top of % elliot wave. Inversion must be at least over 7000. More then this again, RSI divergence are always a secundary signal, we must wait the trend to confirm it
Miru84
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Hey, any updates on this chart? :) Thanks again for the amazing work you provide us!
It seems reasonably clear to me that we are still within wave three of this pump since 3000, which makes it likely that we are going to hit the trendline. We have three trendlines of various degrees possibly converging on the 24th or 25th. This indicates to me that we are going up.
I agree though, it is looking very shaky at the moment and it is definitely at a tipping point. We should know more by noon tomorrow.