Bitcoin pushed higher than I expected when looking back at my April 29 analysis. Many called me wrong for being bullish then, and I'm sure I will be called wrong for being bullish now, but let's take a look at the chart.
Bitcoin blew passed the 6.5k resistance and ran on to 8.4k before hitting a wall. This did not give time for the bulls to build a proper support at the underlying levels. Anytime an asset does this traders should be cautious and keep a close eye on their trade.
After stopping at 8.4k Bitcoin fell back and pushed at it again creating a double top. It was at this point, via Twitter, I detailed that Bitcoin was going to retrace to the 6.3k - 6.5k region and that it would be quick and violent. It was - an actually quicker and more violent than I originally thought it would be. Having taken a short position for this move I was met with great success on the trade than I expected.
Bitcoin tapped the 50 fib on the fall almost perfectly and has since been consolidation in the range of 7.2k-7.4k. Many analysts have now gone bear bias and are predicting further moves down to 6.5k, 5.4k, and even in the 4k's. However, given the nature of the market, I see this as the least likely of the possible scenarios.
Instead, during the violent dip I believe that Bitcoin hit the Wave 4 retrace target, is consolidating, and will next move up to complete a five wave structure with the Wave 5 target coming in at $10277. It is here we can look for Bitcoin to make an ABC correction where it should remain above the overall upward trend and continue the bullish market cycle.
As always - trade safe and set appropriate stops if the trade goes against you.
Bitcoin blew passed the 6.5k resistance and ran on to 8.4k before hitting a wall. This did not give time for the bulls to build a proper support at the underlying levels. Anytime an asset does this traders should be cautious and keep a close eye on their trade.
After stopping at 8.4k Bitcoin fell back and pushed at it again creating a double top. It was at this point, via Twitter, I detailed that Bitcoin was going to retrace to the 6.3k - 6.5k region and that it would be quick and violent. It was - an actually quicker and more violent than I originally thought it would be. Having taken a short position for this move I was met with great success on the trade than I expected.
Bitcoin tapped the 50 fib on the fall almost perfectly and has since been consolidation in the range of 7.2k-7.4k. Many analysts have now gone bear bias and are predicting further moves down to 6.5k, 5.4k, and even in the 4k's. However, given the nature of the market, I see this as the least likely of the possible scenarios.
Instead, during the violent dip I believe that Bitcoin hit the Wave 4 retrace target, is consolidating, and will next move up to complete a five wave structure with the Wave 5 target coming in at $10277. It is here we can look for Bitcoin to make an ABC correction where it should remain above the overall upward trend and continue the bullish market cycle.
As always - trade safe and set appropriate stops if the trade goes against you.