Hello friends,
Analyzing the Bitcoin chart we see fractal patterns that repeat over and over again. That is all about cycles.
After breaking down the descending triangle Bitcoin found support in 7700-8800 price channel. BTC has the same price action behavior as during accumulation period in 2018-2019 after breaking the 6K support and falling to 3K.
With higher lows and higher heights BTC is showing strength which means that breakout of that ascending triangle is inevitable.
RSI and MACD on a daily are on the same levels as in 2018. Volume is decreasing and volatility is expected to decrease too. But this is exactly what usually happens in such cases! Just remember what happened in 2018 and be ready for boring price action in the next couple weeks.
With the highest probability we should expect Bitcoin to break through the 9K level of resistance in the end of October 2019 and go at least to the 0.618 Fibonacci retracement that is 10500. Partial profit taking zones which correspond to 0.382 and 0.5 Fibonacci levels are indicated on the chart.
4th wave of Elliott wave structure has completed its ABC correction and found bottom at 7910. The final impulse 5th wave has to be extended. Bitcoin loves making parabolic final moves.
BTC closed daily with a Doji candlestick above the bottom line of ascending triangle. We might consider 7800 price zone as a strong support.
We got confirmation from weekly candlestick closed with a long lower wick. Weekly 100 moving average acted as a strong support. 7800 price zone can be considered as a local bottom.
There is an expiration of CME Bitcoin futures on the 25th October 2019 so we can expect breakout happening near that time. By the way futures gap at 12K is still not closed. So BTC might go slightly higher. All gaps on Bitcoin CME Futures were closed before and it is likely for that one to be closed as well.
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already.