BTC as managed to break free from its 7 month downward consolidation after creating a bull flag.
Drawing a fib from the start to the end of the 2019 bull run, we can see that BTC retraced and closed perfectly on the 618 retracement line (month chart) before catapulting to where we are now.
What I expect
I now expect BTC to test the bigger resistance trend line...
Price as broken and retest resistance now support level 132. If price stays above this level, we can look for a nice upward trend move towards 134.5. Stop loss below 131.7. I will stay in this trade unless a daily close below 131.7
I have a change of bias here. Price had a nice weekly close below 107.836 and then retested. Since then price as created a diagonal range to the down side. Next level of key support would be around 101 area. This is where i feel price will consolidate before deciding on its next target. Therefore i have marked two possible areas to get in short.
You've seen it here first folks. I will be looking to short the pound dollar into the green zone (1.36 - 1.37). It may go down to 1.35. This would finish a 5 wave correction. The next targets i'll then be looking for will be 1.45 - 1.48.
PS—preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move.
SC—selling climax, the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in...