Bitcoin Could be Due for a CorrectionCorrections are needed for more upward movement :)
Bitcoin is currently grinding the top of the channel which has taken weeks to form.
One would think that gravity should pull us down, however the news articles, forms and chatroom's seem to be full of people believing that this is a new bull era.. (which it could be)
Looking at the TA:
Bitcoin is currently sitting at TL resistance within the channel and wedge that it has been forming over the last several weeks.
The chart also shows us sitting just above the 2.618 fib resistance level created by most the recent swing at the bottom. This level marks the completion of a bearish bat which if Bitcoin does not smash through, then
we will likely be dropping south out of the wedge and maybe even the long term channel.
My plan:
I have already sold my holdings and opened several small shorts from 5800-5900.
I am hoping to close these near the TL support which is around 5200 USD.
IF the harmonic bat holds true, then Bitcoin could get a retest of the breakout around 4300.
The major pairs in the market have seen nothing but upward movement for weeks. It is only a matter of time before we get a healthy correction. So just trade carefully and try be prepared.
