Bitcoin : Short term perspective and break out strategy
If you ask me about the current Elliott wave structure, I believe it will be a difficult question for me as there are still a lot of doubts that occur in the current structure. However, I'll share with you in another perspective that also can be valid.
First point that I want to share is that the price has already shown us a rejection since it touched the black region which I do believe that this could be the action of respecting the 1.618 Fibonacci extension level which also located at the $49000. This action is a natural behavior since we saw the price moved parabolic since the $37000 zone. I still see this as a healthy pull back as we know the $49000 is slightly below the $50000 region as the psychological number of all asset. A healthy pullback is the definition of throwing out the price from the local top to get more momentum at the journey to the downside to gain more volume. This momentum will be used to another test toward the strong resistance or the interim swing high at this case.
Second point is from the perspective of the break out strategy which often occurs whenever the price has broken out of the strong resistance. In this case, I will give the highlight on the phase 2 of the break out strategy which is retesting previous broken resistance as a support. From this chart overview, there are 2 levels that haven't been tested since the price started its bullish upside moves. The first significant level is the black trend line which has been broken and the $40000 range as the previous cycle's top. At some time in the future, I do believe that the price will retest these 2 levels as the supports.
In my opinion, we have to be aware of the future's movement as there is a strong indication of the price will tests the below support which I've already covered in the previous paragraph. I also see the sign of potential pullback in the near future which we can see that the MA line on the MACD in the 4 hours time frame has shown us a death cross. If the price melts down in the future, I'll look to open buy position in the 2 supports I mentioned before to catch bounce from this.
First point that I want to share is that the price has already shown us a rejection since it touched the black region which I do believe that this could be the action of respecting the 1.618 Fibonacci extension level which also located at the $49000. This action is a natural behavior since we saw the price moved parabolic since the $37000 zone. I still see this as a healthy pull back as we know the $49000 is slightly below the $50000 region as the psychological number of all asset. A healthy pullback is the definition of throwing out the price from the local top to get more momentum at the journey to the downside to gain more volume. This momentum will be used to another test toward the strong resistance or the interim swing high at this case.
Second point is from the perspective of the break out strategy which often occurs whenever the price has broken out of the strong resistance. In this case, I will give the highlight on the phase 2 of the break out strategy which is retesting previous broken resistance as a support. From this chart overview, there are 2 levels that haven't been tested since the price started its bullish upside moves. The first significant level is the black trend line which has been broken and the $40000 range as the previous cycle's top. At some time in the future, I do believe that the price will retest these 2 levels as the supports.
In my opinion, we have to be aware of the future's movement as there is a strong indication of the price will tests the below support which I've already covered in the previous paragraph. I also see the sign of potential pullback in the near future which we can see that the MA line on the MACD in the 4 hours time frame has shown us a death cross. If the price melts down in the future, I'll look to open buy position in the 2 supports I mentioned before to catch bounce from this.
