Bitcoin continues to struggle with the $4000 resistance region, and the bear market continues.
$4000 has been a strong region of resistance since November when the initial break of the descending triangle happened from $6000. The ABCDE triangle in Wave X broke down only to find support at $3500 where we saw a bounce to form the A wave of the ABCDE which topped out at $4423 (a strong horizontal resistance), and I have been trading this as an ABCDE in the larger B Wave, a 3-3-3-3-3 correctional structure pattern. While $4200 resistance holds this is my primary count that I am trading from on a larger time scale. A break of $4260 will invalidate this Elliott Wave setup. A key region of support still remains the 200 weekly moving average which is currently at $3410. This is the major support in my opinion that bulls will want to hold. Although I am trading Bitcoin on higher time frames short, I would be quick to readjust my positions should price close above $4250 with volume, and until that happens the chart remains bearish.
I will cover this count in much more detail on my Youtube channel, but I hope you have enjoyed the brief write up today for my position on Bitcoin.
$4000 has been a strong region of resistance since November when the initial break of the descending triangle happened from $6000. The ABCDE triangle in Wave X broke down only to find support at $3500 where we saw a bounce to form the A wave of the ABCDE which topped out at $4423 (a strong horizontal resistance), and I have been trading this as an ABCDE in the larger B Wave, a 3-3-3-3-3 correctional structure pattern. While $4200 resistance holds this is my primary count that I am trading from on a larger time scale. A break of $4260 will invalidate this Elliott Wave setup. A key region of support still remains the 200 weekly moving average which is currently at $3410. This is the major support in my opinion that bulls will want to hold. Although I am trading Bitcoin on higher time frames short, I would be quick to readjust my positions should price close above $4250 with volume, and until that happens the chart remains bearish.
I will cover this count in much more detail on my Youtube channel, but I hope you have enjoyed the brief write up today for my position on Bitcoin.