Bitcoin (BTC) Morning Update: Reversal UP in Progress! $7,200 First UP Target..Check out this EXTENSIVE Analysis!!
SUMMARY
Wow! What a reversal in progress! Last night I had indicated that a bottom is near and showed the below chart. I used the length of white wave (i) to approximate the length of white wave (v) to arrive at $6,013. Prices almost spike dipped as low as $5,550 and if you caught it as a buy, congrats!
The below chart displays a price pathway for further upside towards $7,400 or so. Also, the very first peak consists of five waves and so Bitcoin has an impulse!
The below is a forward discernment using Chart Pattern Recognition. The Head & Shoulders Bottom is quite uncanny. Not only that, the volume thus far confirms! Beautiful! Now, the Right Shouler (RS) needs to complete the H&S Bullish pattern and once price exceeds the white horizontal Neck Line, the pattern would be confirmed!
I've further forward discerned a bullish Head & Shoulders pattern of a larger degree of trend. The below chart shows that a smaller H&S pattern could be embedded within a larger H&S pattern. This adds more pattern confirmation to the reversal. However, both H&S patterns must complete the Right Shoulders.
The counter part is a bearish potential and this is my alternate count. We could potentially be seeing an a,b,c retracement and further downside could occur with lower lows.
From a Chart Pattern perspective, a upward bearish diagonal could be in progress and once the final e wave completes, price could look for lower lows. Again, this is an alternate count.
One must remember that a good Technical Analyst tries to identify as many possibilities and narrow them down to a few probabilities. In that process, a primary and an alternate price pathways are identified. This is also the reason why Technical Analysts often are not surprised by price moves because such has already been considered and evaluated.
On last night's Bitcoin Evening Update, I had stated that once Bitcoin reverses, Bitcoin Cash could do the same, except in the opposite direction. The below chart of BCH shows a forward discerning chart pattern: A Bearish Head & Shoulders Top. It is NOT an accident that such inverse pattern appears on Bitconi Cash. Drawing a line from the main body top of the Head to the Neck Line to find the minimum price distance shows an aread of $221...Is this for real? IF the inverse relationship to Bitcoin; e.g. Non-Phasic congruence; is active; then yes, the Bearish Head & Shoulders could play out. Have you taken your profits humbly and gratefully?
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Laddering and Buy/Sell Setups.
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
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BTS Wallet - haejin1970
BTC Wallet - 15ugC4U4k3qsxEXT5YF7ukz3pjtnw2im8B
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LTC Wallet - LecCNCzkt4vjVq2i3bgYiebmr9GbYo6FQf
Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**
Me thinks it's more of a zig zag (5,3,5)
Do you see the waves?
Two hours. Zero confirmations. Don't panic, this is only wave a. Hashrate will be returned in preparation for final assault.
coindesk needed this pic
BTC is relatively stable now ? BCH is falling.
Correct that, it shows signs of life...
Also, I get a $100 better rate at Kraken than at Bitfinex.
Hmm. Not always, but sometimes. You don't always get a deal at Kraken, have to keep trying.
so you are predicting a drop to $4200 ish ?
There's the man with the plan, nailed it once again, even amidst all the craziness of last nights markets.
I see you added your BTS wallet address! Good timing...that thing is about to shoot off!
Ver just dumped 25,000 BTC. Jihan is next.
echung so BCH will grow more?
Lets be honest, we can gain more and faster with BCH right now.
Not true ?
Y'know Haejin, when I look at the charts and add the value of BCH to what BTC is worth now, I arrive at about 7800 USD, which is what BTC was worth before the BCH attack. Just saying, but hey - that doesn't of course mean a thing if we just keep looking at one at a time ;)
Same is of course the problem with the alts...
A schizoid situation... I would be so happy if they both went straight up to 10k but is it gonna happen without Wall Street jumping in ? Wonder if they're laughing their heads off now at Goldman Sachs and the others
Hmm, interesting.
Sticking just with TA has helped to to manaeuver around some of the most schizoids.
To me that means ignoring all rumors, conjectures, news, user reports....just TA.
and with just TA, do you see the second volume shoulder formed?
thanks for your help.
hi haajin.. you told us that BCH could go to 200$ from now and 15 hours later you show us a abcde partern that could lead bch up to 2000$ again ??????????
Interesting, meaning fund moving from btc to bch?
Well, you have to be prepared for it. Look at the way Haejin tries to reckon with several possibilities always, have to bring yourself into position at your exchange so you can act fast and decisively in the opposite direction - and read up on what the analysts say so you can decide what to do.
Or get into a rather stable currency to stay out of the fire, like litecoin, or even flee into tether or fiat for awhile ;)
BRO BCH just plunged will it go up again?
They will have to compete for the market cap, for the volume... I had no other choice but to buy both
jojof so will it increase is that what you are speculating?
@haejin, you mailed it again on btc & bch! Thanks for that. To follow up with bch, does it mean it will go to $2xx then to $4xxx?
The plot thickens...
Thanks Haejin good calls as always !
Can you give a brief update as to where you think we are now in the wave V of V bigger picture !
I'm looking for the news or event that will come to justify your massive correction and some of these BCH dramas and rumours might be part of it
Thanks
I cannot sell my coin- CB has my btcash locked up!
I guess safest way to buy btc in current circumstance is to see if it breaks $6800 price range(second neckline of H&S). I appreciate your work as always. It is very educational and informative. I learn everyday.
Safest and best way is to ladder in! See my ladder entry tutorial video.
@haejin BTC is dropping. Is it a bearish or bullish trend?
It could be puttin in r shoulder like haejin said pay attn!
okay. will do!