So it's Sunday, so I'm gonna keep this short :)
Anyway, I hope you are liking the analysis so far. We're getting to an exciting stage in the BTC market cycle, and with so many new investors/traders to the scene we are gearing up for yet another record breaking run. But let's talk about BTC's price action today.
As I showed in my last chart, the purple box is where we've seen a lot of price action in the past while, so I like to see if it gives us any resistance/support. As you can see, we bounced off it and is heading down towards the trend line below (around 10k).
So now, all I do is count the waves to see where we are in our current trend. This gives me a projection of where the price MAY go, and I can work out entry/exit targets from there. I am reactive, which will go a long way in this game. It's not a game of predicting the future (as fun as this is to shock my friends and family) but if I am decisive in what way I think the market is going, I can make profit whether it goes up or down. Win win.
So back to Bitcoin. I cannot count a 5 subwave structure (which would be within wave 1 on the chart shown). At the moment I'm getting a wave 1, and perhaps a 2 and 3, but it doesn't fit the Elliott wave principles.
This shows me that we are not finished our wave 1, so I am going to hold out to see if I can work out the 12345 subwave structure contained within the impulsive wave 1 shown.
In my opinion, I think we'll complete our impulsive wave 1 and perhaps bounce off the resistance that is the trend line above right about where the end of wave 1 is, and head for the support line below. This means we'll test 10k again pretty soon, which will be a pivotal point in it's journey to new all time highs.
Not much else to say really, I'm just waiting to see where we actually finish our wave 1 up, so I can make projections based on the where I see the 12345 wave structure finishing. We will most likely complete this wave within the next couple of days, and then it'll be a week or so before we play with 10k again. What this suggests is that the next couple of months could be up an down to finalise price action for BTC going forward.
Don't worry, I still think it'll hit 20k soon enough, but this is exactly why you don't just hold :)
Peace.
- B