I'm watching this Diamond Consolidation scenario closely since I believe this is highly likely to play out. We could see a pump to invalidate this scenario but I somehow can't see that happening.
If we see a repeat of May - June 2022, I won't be surprised. We saw the price Pump and Dump between the 200 EMA and the Downsloping Red Trendline before a Mega Capitulation. I'm comparing the 4HR timeframe then to the 8HR Timeframe now because the 200 EMA lines up better with the 8HR chart now.
I'm teaching myself / practicing Elliott Wave principles and I think the current price action looks like it's following Elliott Wave.
Bitcoin appears to playing out this Bump and Run Reversal Top. The DXY looks Bullish and the S&P 500 is still bearish.
This Wyckoff Redistribution appears to explain the price action. Also Bitcoin had a retest of the upward sloping trendline in the RSI.
In the Bullish Scenario, Bitcoin could pump to 17.7k because of this Rising Wedge Retest and Descending Broadening Wedge.
These are the Bearish and Bullish Scenarios I'm currently watching.
Bitcoin is likely already heading towards 10K and it'll probably get there before the end of this year. 10K has been an important price level in the past and that's where the next major level of support is.
Bitcoin closed off last week with a Shooting Star Candlestick, which is typically an extremely bearish candlestick pattern.
Bitcoin just had a Bearish Cross on the 1 Day MACD. Also Bitcoin couldn't close a Daily Candle above the 38.2% Retracement.
Bitcoin has reentered it's previous range and it looks like it's forming a Bear Flag on the 2 Hour Chart. Conveniently, the target of the Bear Flag is the bottom of the previous range.
Bitcoin broke through this RSI Trendline on the 1 Day Chart. The last 7-8 times this happened predicted the impending drops.
Bitcoin is currently leaving the Denial Phase and it's approaching the Panic Phase. It's still surprising to me that people are buying BTC at this price since I think it would be better to wait until at least 5k BTC but that's just my opinion.
Bitcoin is entering Phase E of this Wyckoff Distribution. In this phase of Wyckoff, we see a capitulation, a big bounce then another capitulation.
The S&P500 is currently seeing a massive dump and the DXY is still going sideways but I feel like it wants to pump at some point in the near future. Bitcoin is still hovering around the 16.8k - 17k range but I think it's already on it's journey to 10k.
A few days ago I was watching this Descending Wedge in the RSI but I thought it had no chance of playing out, so I didn't mention it, but it ended up playing out.
Bitcoin is currently leaving this Ascending Channel on the 1 Day Chart. The last time BTC lost an Ascending Channel on the 1 Day chart we saw a massive capitulation.
A Bullish DXY and Bearish SPX may cause the next leg down for BTC.