Not financial advice. Do your own research. The ideas shared here are the personal opinions of the BitDoctor team. Trade at your risk.
Trading takes time. Time takes patience. Patience pays off. Invalidation of this idea is if we get a new high on Bitmex XBTUSD at $5650.
Let's look at a few things here. We're on the 4H chart so don't give too much weight to the 21EMA in the chart. Although we were supported by the 21EMA for the better part of 2 days back around the 23rd of April, we're well above it right now.
What I want to focus on right now is a mixture of Market Geometry and Education.
Market Geometry
We are in a clear channel right now (in Magenta). We didn't quite hit the top of it and we might still go up there but I expect us to continue the trend while we are up here. Paying attention to the median which right now is sitting right around $5300 which should hold some support.
Education
We had a pretty big sell off between the 22nd and 25th. People can blame the Tether news and such but one way or another we found support around $4960. We also came down in 3 waves. This is somewhat important. $5650->$5360->$5500->$4960. I am counting that as an ABC correction into a bigger A wave. Next is the B wave that I am proposing we are in which I expect to retrace to either the golden zone (61.8%-65%) or the 76.4-78.6%. We just got rejected at the golden zone and it's still too early to tell that this is a pivot but I'm looking for the correction once we're finished to take us down.
How low? Let's discuss that! (Let's assume $5409 is the pivot - still unconfirmed)
On an ABC correction, we measure the A wave and start wave C from the end of wave B. This is measured using the CYAN trend based fibonacci. There are 3 hypothetical targets for a C wave:
What happens if we get further down on wave "C"? Down to the 161.8% or the 175%? That invalidates the ABC correction and would indicate that we're going much lower and this is likely wave 3 of a 5 wave pattern.
In case you were wondering. I hate chart memes like cup and handle / head and shoulders. Strike rate on those is typically really low. I prefer to recognize channels and wedges and look for divergence.
Trade safely friends!
<3 -CE-
Trading takes time. Time takes patience. Patience pays off. Invalidation of this idea is if we get a new high on Bitmex XBTUSD at $5650.
Let's look at a few things here. We're on the 4H chart so don't give too much weight to the 21EMA in the chart. Although we were supported by the 21EMA for the better part of 2 days back around the 23rd of April, we're well above it right now.
What I want to focus on right now is a mixture of Market Geometry and Education.
Market Geometry
We are in a clear channel right now (in Magenta). We didn't quite hit the top of it and we might still go up there but I expect us to continue the trend while we are up here. Paying attention to the median which right now is sitting right around $5300 which should hold some support.
Education
We had a pretty big sell off between the 22nd and 25th. People can blame the Tether news and such but one way or another we found support around $4960. We also came down in 3 waves. This is somewhat important. $5650->$5360->$5500->$4960. I am counting that as an ABC correction into a bigger A wave. Next is the B wave that I am proposing we are in which I expect to retrace to either the golden zone (61.8%-65%) or the 76.4-78.6%. We just got rejected at the golden zone and it's still too early to tell that this is a pivot but I'm looking for the correction once we're finished to take us down.
How low? Let's discuss that! (Let's assume $5409 is the pivot - still unconfirmed)
On an ABC correction, we measure the A wave and start wave C from the end of wave B. This is measured using the CYAN trend based fibonacci. There are 3 hypothetical targets for a C wave:
- 61.8% - This is a bit truncated as it isn't as long as the A wave. This takes us to basically a triple bottom at $4983
- 100% - This has been seen in prior corrections and it takes us to about $4700
- 123.6% - This is a pretty deep correction but still a valid option. Taking us to $4550
What happens if we get further down on wave "C"? Down to the 161.8% or the 175%? That invalidates the ABC correction and would indicate that we're going much lower and this is likely wave 3 of a 5 wave pattern.
In case you were wondering. I hate chart memes like cup and handle / head and shoulders. Strike rate on those is typically really low. I prefer to recognize channels and wedges and look for divergence.
Trade safely friends!
<3 -CE-