Bitcoin has recovered its bearings since stumbling last thursday. Lets check out the charts to see where to from here...
BTCUSD Hourly on Bitstamp
- We are traing at 11679USD at press time.
- The last 36h has been a more subdued market following the torrid rally and then selloff.
- We are still only at a 16% retracement at the moment from the local high of 13880usd
- I have been blocking in the trending hourly price action which you can see in purple on the chart.
- It is fairly consistent with the corrective behaviour of #bitcoin
- Volumes have died down
- But the red candles show stronger volumes than the green indicating a pessimism in the market at the moment.
- I think many are still waiting for lower levels and short term traders are playing the new entrants into the market that see this pull back as their chance at cheaper bitcoin
- If the local peak of 13880 was the "1" of the bull Elliot wave, then we are seeing the ABC of the corrective waves play out.
- According to Elliot wave theory, "C" must be lower that "A", if A is the local low of 10300usd.
- This is the most likely behaviour going forward: a move lower to set C of the corrective wave which will be wave 2 of the larger bull wave.
- I think a lot of "smarter" money (smarter than we had in 2017, remember they were still in denial back then) is watching for this wave pattern to play out and get their long positions in place for the wave 2 to start.
- According to Elliot wave theory, once wave 2 starts, it will most likely take out the all time highs of 20k.
As always guys, leave comments, have fun and trade safe.
Disclaimer: This post is not financial advice. Before investing any funds do your own research and make your own decisions. Cryptocurrencies are highly speculative.
And finally: Do not invest money you are not comfortable losing.
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