After breaking the major downtrend line, Bitcoin went up and now making a pullback. The pullback is unfolding in a harmonic pattern. After the harmonic pattern is complete, breaking its right leg downtrend line can be a signal for the next minor uptrend wave; a signal for those who trade the swings. However, keep in mind that it seems Bitcoin is not going to show a clear direction soon and more horizontal patterns most probably happen. Albeit, when the RSI value dip below the 30 or the downtrend line in the RSI indicator window breaks, a different behavior could be seen from the market. So, it is necessary to monitor the markets’ behavior.
Note
After the harmonic pattern ended, the minor uptrend wave has started. Then, the correction wave came down to Fib level 0.618. If this level holds true, the Fib extension can show us the possible area for the end of the next wave. It seems, most probably, that the current setup could be an A-B-C wave. After that, Based on current candles behavior we could see a somewhat strong downward wave; Unless Bitcoin breaks the 40k to 41k area with a strong move. So manage your stop loss and money management carefully.
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So the Fib level 0.618 didn't hold the price and Bitcoin went down rapidly. This was the last minor wave of the harmonic pattern's right leg which was unfolded in an inverted wedge. Remember, trading the inverted triangle or wedge is difficult but can be lucrative if one can master it.
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It seems that Bitcoin is ascending slowly in an upward channel.
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Bitcoin still oscillating in this multi-support/resistance channel. This behavior indicates that Bitcoin (or buyers and sellers) is still undecided; There will be more fluctuations ahead if there is no major news.
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Almost ready for takeoff. Waiting for the signal.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.