BTC - continued path to $7k-$8k
BTC will struggle to get to $7-8k from here without either a 1-2 day sideways consolidation or a more brief rally. I expect this because:
(a) 4hr RSI is oversold
(b) There is divergance on the 4hr RSI
Depending on how long the consolidation occurs for, we will either then have one flash sell off or a double sell off with another consolidation in between.
Either way, I expect that we will find the final level of support at around 8000 but I am expecting a very brief flash through this level to 7500 or even 7000 like on 22 Dec. You can capture this by putting in limited orders.
I'm then expecting to see a quick bounce back to to the 10,500 levels. This will then be a crucial point. If we see a reversal back down from here we could well be heading into a new 5 wave contraction, this would be a prolonged 1-2 month period where we could head back to $2-3k. I'll be watching carefully at this point and would look to sell all, including most of my core if this looks like happening.
(a) 4hr RSI is oversold
(b) There is divergance on the 4hr RSI
Depending on how long the consolidation occurs for, we will either then have one flash sell off or a double sell off with another consolidation in between.
Either way, I expect that we will find the final level of support at around 8000 but I am expecting a very brief flash through this level to 7500 or even 7000 like on 22 Dec. You can capture this by putting in limited orders.
I'm then expecting to see a quick bounce back to to the 10,500 levels. This will then be a crucial point. If we see a reversal back down from here we could well be heading into a new 5 wave contraction, this would be a prolonged 1-2 month period where we could head back to $2-3k. I'll be watching carefully at this point and would look to sell all, including most of my core if this looks like happening.
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