Again, posting TA for Bitcoin from a trusted source.
Above is the 4 hour chart today. As you can see in the macro trend we've got two bullish patterns converging:
the cup and handle
the inverse H&S
However, the price at the current $8,200 level is barely holding these bullish patterns valid. Let me explain. As a general rule of thumb, the Inverse H&S pattern is bullish but the breakout from this will be invalidated if the neckline is breached in a severe fashion. So far we are just hovering on it. Now the cup and handle pattern is not too far from invalidation just like the Inverse H&S pattern. As a general rule of thumb the handle should not go deeper than 50% of the size of the cup. At the current levels we're only $150-200 (~$8,000) away from it. Correction waves usually occurs after a bullish impulse. We finished a micro five wave EW set (not shown). So I believe we could be in a ABC corrective wave or an ABCDE, depending on how the next few hours/days go. The ABC shows that A and B are finished, now onto the C wave. I'm hoping the C wave stops right at the 618 fib level (shown in white) at the $7888 marker. Which also coincides with the larger wave 2 of the bigger pattern at play. The 40 EMA (green) and the 20 EMA (purple) have also had their bearish cross (green on top of purple) usually when this happens, I've recognized that we are still in a bearish trend. You can utilize these on multiple time frames (1h, 2h, 4h, 1d). So as far as the chart goes, most signs are showing bearish momentum. This does not mean we'll be bearish forever. Just means that this is just the ebb and flow of this particular asset. It's the nature of the game- what goes up, must come down. Unfortunately, we are on the corrective phase right now. Where this will end, I do not know. I will update you if I see more movement that indicates a direction.
