Bitcoin fighting an epic battle of bulls vs bears
The bulls and bears have been fighting hard over the last week.
As of now, I see bitcoin following 1 of 3 paths.
The first is bullish and has it in a WXY corrective pattern...something I've pointed out as a possibility for a few days now. If this is the case, that would mean we've seen the bottom and the WXY pattern is complete. This would have bitcoin currently on wave 1, with a possible target of around $9,200 for the first wave.
The second scenario is bearish and something I pointed out last night. Bitcoin may have had a trend change, meaning we are currently in wave 4 of 5 waves down. We can see a bearish rising wedge may be forming. It could indicate a possible drop still to come.
We can also see bearish divergence on the 1 hour MACD. This could also indicate a drop may be coming.
If this is true, we could see wave 5 target around $7,481, which is the 1.0 fib level. It may look like this:
A third and final possibility is bearish short term, but bullish overall. It would have us in a WXY corrective pattern. However, it'd have only wave A complete, with waves B and C still to come. That would mean a temporary rise to possibly $9,300, only to have it fall again to complete wave C. I'd then expect an impulse wave up from there. That may play-out like this:
Looking at the 30 min and 1 hour RSI, we can see an ascending support line has formed. We need the support to hold, especially on the 1 hour RSI, if the bullish scenario has any chance of happening.
Looking at the 4 hour chart, Bitcoin has found some support on the 8 day EMA. This also needs to hold for the bulls to win this battle.
As you can see, there are still many mixed signals in the market. Let's keep an eye on the indicators I've pointed out and see where the next 24 hours takes us.
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. I wish you great success!
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Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.
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Excellent post. Seriously...I've never seen such clear, well explained yet easy to understand analysis. Well done my friend.
Thank you sir.
Thanks for analizing the charts so I don't have to...haha. Joking...sort of. :-) You really do a great job. Would love to get your thoughts on Stellar (XLM), Ripple (XRP), EOS and VeChain (VEN) if you get the chance.
I'll take a look. These posts take time as I try to give you insight from all angles. I feel like I owe my followers honest analysis and not just quick BS. Due to that, it's hard to find the time to crank out many post in one day...but I'll try and look at a couple of those. You just happen to mention some of my favorite coins by the way.
Thank you. good analysis, clear and well-grounded
Thanks
The mixed signals in this evolving year really differentiate how this year is playing out as compared to last year. I attribute this big difference to the entrance of massive short selling and futures trading impact on our market. Also the ongoing threat of Mt. Gox selling in open market. I see an approaching big opportunity developing for you as Haejin prepares to take his public analysis off Steemit, to his private group. You should inherit part of his followers. I love your work, thank you.
Thanks for the kind words @eaglet. I agree the futures market temporarily killed the bull run, but that won't last much longer in my opinion. Once crypto goes from theory to mass adoption, it'll be unstoppable. I didn't know @haejin was leaving Steemit. That's a little surprising considering the money he makes on here.