Bitcoin's had a tough couple days. As I said yesterday, I believe it’s been in a WXY correction. It seems as though the final wave down MAY be complete.
If you missed my update yesterday, I highly recommend you review it so you’ll understand today’s charts. I discuss the meaning of WXY patterns. For those unfamiliar, here’s the link: https://steemit.com/cryptocurrency/@workin2005/bitcoin
If the “Y” portion is complete, we can expect an impulse wave up. Volume spiked, which is indicative of an impulse wave. If this is in-fact what we’re in, it may play out link this:
The 1 hour RSI is starting to show strength. It looks like an ascending support line is forming. If this support holds, we may be on a path to test $10K again.
There is a ton of FUD in the media right now. I’m sure many have heard about the SEC deciding whether or not to classify Ethereum as a security. This is causing fear among some investors and seems to be affecting the entire market.
Should it continue on a down trend, we might be looking at what’s called a WXYXZ pattern. This is basically just an extension of the WXY pattern. It would have another impulse wave fail (labeled as X), followed by another ABC correction. This is NOT my primary count, but it is a possibility. Should that happen, it could play out like this:
Finally, I’m still keeping an eye on the 4 hour MACD. As you all know, I’ve been pointing out a wedge that’s formed and is squeezing the histogram tighter and tighter. As it moves closer to the apex, a breakout becomes more likely.
Let’s keep a close eye on bitcoin over the next 24 hours. I expect if the SEC comes out with negative news, it may dip further. However, if there’s positive news, a massive rally could follow.
BIAS:
Short-term: Neutral
Longterm: Very Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.
If you found this post informative, please:
Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.
If you don’t have an account on Binance, I STRONGLY recommend getting one. They’re usually the first to get reputable coins, have excellent security and second to none customer service. You can sign up here for free: https://www.binance.com/?ref=16878853
We need a very bullish scenario. How would it look like?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The bullish scenario is the first one I listed in this post. Here it is again:
Volume needs to remain strong for this to remain in play.
It sounds like we may not have clarity for another few weeks from the SEC. If you’re interested, I came across a video giving a fairly good explanation of what’s happening regarding the SEC, Ethereum securities issue. This will affect the entire market.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I believe that for a long term very Bullish trend we need a short term Bearish one.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
We’ve had 2 bearish trends since January. The first dropped to $5,850 and the second dropped to $6,450. As long as we continue to get higher lows, a temporary drop could be healthy.
The truth is, this is more of a fundamental issue right now. We need regulatory clarity from major countries, which I believe is coming. As soon as this happens, we’re going to see a major bull run that will dwarf last years. Just my opinion.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Let us hope we get the first scenario then :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great analysis, first chart was path chosen, seems to have been put into play. Would you do a revisit to EOS.? It's come out of the bottoming process, next 30 days are going to be amazing. Golem, ZRX if you have time. Thanks.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks. I’ve been busy lately but will try to look at EOS soon. May not be today as I’m on the road.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit