Bitcoin is going through a correction after a rejection happened yesterday at 9200$. Now the question is when to buy bitcoin at what price point?
Let's analyze 4H timeframe:
- Bitcoin broke down from rising wedge yesterday, rising wedge neckline should act as resistance for a further drop. So we need to see how price reacts when it tries to break above 8800$.
-IF Price rejects at 8800-8900$ then, it will make a lower high on the lower time frame, and that could be followed by lower low later.
-We can also spot another rising channel trendline inherited from 6850$ when price made a Higher low and broke out from bearish structure by making high later on.
-Trendline support is at around 7800-7900$ which should act as strong support for bitcoin.
Elliot waves count
An impulsive move from 6430$ looks like the starting of Major wave impulsive wave -1 which can be divided into 5 sub-waves.
First subwave: price rose from 6430 to 7660$
Second corrective wave: price corrected to 6850$
third subwave: price rose from 6850$ to 9200$
Bitcoin is currently into subwave-4 of major impulse wave-1 which could correct the price to sub 8000$.
Support levels to watch out for bounce:
7800,8200$ and 8500$.
Bitcoin can bounce from any of these areas and continue the bull trend.
As the Chinese new year will approach this week, we might see a brief consolidation for 1-2 weeks, and that should be the best time to accumulate bitcoin for halving rally.
Trade Signal:
XBTUSD
Entries: 7800-8200$
Exit: 12000-13000$
STOP: 7400$
Let's analyze 4H timeframe:
- Bitcoin broke down from rising wedge yesterday, rising wedge neckline should act as resistance for a further drop. So we need to see how price reacts when it tries to break above 8800$.
-IF Price rejects at 8800-8900$ then, it will make a lower high on the lower time frame, and that could be followed by lower low later.
-We can also spot another rising channel trendline inherited from 6850$ when price made a Higher low and broke out from bearish structure by making high later on.
-Trendline support is at around 7800-7900$ which should act as strong support for bitcoin.
Elliot waves count
An impulsive move from 6430$ looks like the starting of Major wave impulsive wave -1 which can be divided into 5 sub-waves.
First subwave: price rose from 6430 to 7660$
Second corrective wave: price corrected to 6850$
third subwave: price rose from 6850$ to 9200$
Bitcoin is currently into subwave-4 of major impulse wave-1 which could correct the price to sub 8000$.
Support levels to watch out for bounce:
7800,8200$ and 8500$.
Bitcoin can bounce from any of these areas and continue the bull trend.
As the Chinese new year will approach this week, we might see a brief consolidation for 1-2 weeks, and that should be the best time to accumulate bitcoin for halving rally.
Trade Signal:
XBTUSD
Entries: 7800-8200$
Exit: 12000-13000$
STOP: 7400$