Technical Analysis on Bitcoin: The Bulls Chalk Up a Win, but Still Have a Hard Road Ahead
During my last video update (titled...“Time to Put Up or Shut Up”), I discussed the strong possibility of an impulsive bounce. Price reached the 0.618 fib level right as it intersected with the ascending resistance line. If there was ever a time for a breakout, that was it. Since then, we’ve seen the bounce up to test the $6,600 resistance.
Now we have to wonder if the inverse head and shoulders will come to fruition. We have all the ingredients for it to complete. Short term, I’m expecting a pull back to around $6,600. From there, I believe bitcoin will likely take another run at the $6,800 resistance. The target for the inverse head and shoulders is about $7,540 (watch video below for more detail). I expect some consolidation before the breakout. Here’s how it might play out.
From an Elliot perspective, this looks like the start of a strong 3rd wave. We need to see volume continue to increase if this is to play out. Assuming volume does continue increasing, a logical target for wave 3 is the top of the $7,700 resistance (1.618 fib).
Looking at the daily chart, we can see price has broken above the 8 day EMA (blue line) and 21 day EMA (yellow line). Ideally, we’d like to see the daily candle close above the 21 day EMA, signifying this latest rise has legs.
Watch my video analysis for MUCH more detail not found above.
Video Analysis:
BIAS:
Short Term: Bullish
Longterm: Very Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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by Workin2005
Many analysts were calling $5800 - $5600 do you think we'll touch those areas again soon?
I got out at $6200 and holding fiat to buy again at the dip, and then BAM is soared ! lol just my luck
Do you recommend any new Entry Points ?
Thanks!
Hey Sarah. I think the real test is the $6,800-$6,900 resistance. If there's a strong rejection off that, it may drop back to $6,000. If btc breaks above, I think it'll likely go to at least $7,500.
If you've followed my updates, you know I think btc is likely in a larger ABCDE correction. That means once this latest rise tops out...possibly at the descending resistance line, it may drop back down to at least $6,000. If btc manages to break above the descending resistance, I'll start getting more optimistic.
Thanks for your reply! Much appreciated
My pleasure. I said we'd likely see $7,500 if the $6,800 zone was broken...but I didn't expect it to happen 2 hours after I wrote that. haha
I like long term : VERY BULLISH.
Long term It's gonna change people's lives. :)
I completely agree. Bitcoin has the chance to change the world as we know it.
I wrote an article about it as well.
Let me know your views about it :)
https://steemit.com/bitcoin/@anubhavgirdhar/why-a-20-trillionusd-crypto-market-bubble-is-inevitable
Nice article!
I like how you explained it, very well man!
Thanks @toofasteddie. Great name by the way!
Thanks man, yours is not bad
Haha...yea, it comes with a story. The short version is, I had a very ambitious plan to try and retire in 2005. It didn't happen, but somehow the name stuck. ;-)
so you have to called "stillworking" then ;-)
Nah...I retired last year. Only missed my goal by 12 years. Haha
Great! Let's see the reaction on the important level around $6800 :)
@workin2005, I'm interested in the same topic as you, let's spin it together. I signed on to you, I hope you'll sign up for me. Always glad to meet new people!