Looking at the 1 day chart, we can see Bitcoin is still struggling to break above the descending resistance line. It can't continue this way much longer. It's either going to breakout, or break down.
The 4 hour chart shows the 55 day EMA is acting as support. The bulls need this to hold. A break below may indicate the start of a major downtrend.
The 4 hour MACD has just crossed over into bearish territory. However, the 1 day MACD remains relatively bullish looking for now.
Zooming out on the 4 hour chart, we can see the MACD trend line hasn't broken above 53 during this latest downtrend. We need to see this resistance broken if the bullish count is to be validated.
My bullish and bearish count remain the same.
If bitcoin breaks up, I believe it's in wave B of an ABC correction, within a larger WXY pattern.
Zooming in, we can see the bullish scenario would have bitcoin in a smaller wave 3 of 5 waves up. The sub-waves are highlighted in pink.
If bitcoin breaks down, it will have likely just completed an ABCDE correction, and began wave 1 of 5 waves down. If this count is accurate, bitcoin would still need to break through a strong support zone between $6,000 and $5,800. If this support fails, we'll likely see bitcoin drop to around $5,000.
Bitcoin is still operating within a descending channel. If the bullish count is to be validated, we need to see it break out of this channel with the next 24-48 hours.
Let's see how the next 24-48 hours unfold.
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.
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by Workin2005
