Looking at the 30 min chart, we can see what appears to be a bullish pennant.
This usually forms during the correction that follows 5 completed waves. Given the pattern is more one of consolidation than straight up or down movement, I believe it's most likely we're in an ABCDE type correction. If that's true, it may play out like this:
It is possible that this is an ABC correction. This is not my primary count, but I can't take it off the table. If this scenario is true, it may play out like this:
Looking at the 30 min RSI, we can see a strong support line has formed at 43.3. If this support holds, I expect scenario 1 to remain in play. If it breaks, expect scenario 2.
The 1 hour RSI also has an ascending support line that has formed. If this holds, scenario 1 is most likely to complete.
Looking at the bigger picture, even if bitcoin does drop as outlined in scenario 2, I believe a strong impulse wave up would follow. The 8 day, 21 day and 55 day EMA's all indicate an over all uptrend will continue.
If you aren't familiar with how to use EMA indicators, you can reference my post on the topic here: https://steemit.com/cryptocurrency/@workin2005/simple-effective-strategy-to-buying-and-selling-market-trends
Looking at the 4 hour MACD, we can see the wedge that I've pointed out these past 2 weeks has still not been broken. The histogram continues to be squeezed tighter and tighter. This may eventually lead to a major breakout as we get closer to the apex of the wedge.
Finally, we can see the bull flag I pointed out yesterday on the daily RSI is still in play. This is another sign of strength.
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!
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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