Technical Analysis on Bitcoin: May See a Temporary Drop in Price

Bitcoin has been continuing to consolidate for the last couple days. Price is being squeezed within a wedge. It'll more than likely break up or down by the end of the day. It looks like a temporary break down is more likely, before continuing the uptrend.
Is this just a guppy rally? What would indicate a longer term bull run? I cover all this and more in today's video.

Video Analysis:

Please watch the above video for detailed analysis not found in the screen shots below.

Waiting for price to breakout of the wedge. If it breaks down (which I expect it will), we have strong support between $6,380-$6,330. I'd expect a bounce between $6,400-$6,350.

My big picture count has Bitcoin in an ABCDE correction. Volume continues to decline on the larger time frames. A break above the descending resistance line would invalidate the ABCDE count. That would mean bitcoin would more than likely be in 5 waves up, with prior completion of an ABC correction. Much more detail in the video.

Bearish divergence on the MACD suggests we will likely see a temporary drop in price in the next few hours. As stated, I believe a drop to the $6,400-$6,330 support zone is likely.

The 4 hour RSI has developed an ascending support line. I’d expect a strong bounce off this area if the RSI drops that far.

Zoomed in, we can see what appears to be a leading diagonal. If the 5th wave is complete, I’d expect an ABC correction as indicated. This will likely test the $6,350 support zone where I’d expect a bounce.

Please watch the above video for MUCH more detailed analysis.
Let’s see how the next 24 hours unfold.

BIAS:
Short Term: Slightly Bearish
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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