The next several hours are critical to show if we bounce against the trend line or if we break it. The china news unfortunately came at the wrong time and could be likely to sway the decision the other way, breaking the trend line and going into the bearish zone.. possibly bouncing back to 38.5 level first.. several challenges ahead.
On the brighter side, if this is what it looks like.. a double triple combo elliot wave, then we should be bouncing back to high 50s, testing the trend line of this recent ABC wave.
RSI and MACD are in the oversold territory but it looks like it could take another cycle there..
On the brighter side, if this is what it looks like.. a double triple combo elliot wave, then we should be bouncing back to high 50s, testing the trend line of this recent ABC wave.
RSI and MACD are in the oversold territory but it looks like it could take another cycle there..
Comment:
We've broken through the long term trend line.. also instead of a breakout, I see a continuation (Lower highs, higher lows) of the correction, entering a bearish trend (hopefully temporary, depends on what happens with bitcoin). Over the weekend, I think we'll be in high 30s. During that period, we should get back to high 40s and drop back again..