Bitcoin : This is how you measure the momentum
Updated
Special analysis on the bitcoin which is the lower time frame and also keep in mind that this is my favorite strategy to identify if the price is gaining a bullish momentum from the consolidation pattern.
Just like what we can see, the price of the bitcoin is still in bigger structure of the consolidation which it's very difficult to identify Elliott wave count. However, there is a powerful strategy that we have been using overtime to solve this problem using Fibonacci retracement count.
If we look at the start of current bottom, we know that the price is still constantly forming a higher low and higher high structure over time which is also becoming the characteristic of the bullish upside movement.
First we use Fibonacci retracement tool to measure how deep the correction on each wave that has occurred.
On the first wave, we can see that the higher low structure is located at the .786 Fibonacci retracement level before the price bounce and forms the higher high.
Second wave is similar with the first wave's characteristic which it's also having bounce right at the .786 Fibonacci retracement level before it claimed another higher high structure.
For the last pair of this wave structure, it shows us a slightly gaining momentum which the price was having bounce right after it touched the .618 Fibonacci retracement level as the golden ratio level (one level above the .786 Fibonacci retracement level).
There is also a strong support trend line that has been holding current structure since it formed a new bottom low this year which hasn't been breached, that's why this could be a strong support trend line that can hold the price.
Based on all of the facts above, the conclusion is that bitcoin's price is now getting strong momentum for bullish structure which there might be another impulse wave to the upside.
Also, we can analyze based on the fractals whether the upside bias is still valid or not. Based on the previous fractals, we conclude that all the price action had bounces right after it touched the area between the golden ratio and .786 Fibonacci retracement level. That's why we can assume that the next area between golden ratio and .786 Fib level as the strong and crucial level for current correction movement (In this case, the area between $22222 - $21540 as the strong area of support) with the main target is in alignment with the .786 Fibonacci retracement level in higher degree,
Just like what we can see, the price of the bitcoin is still in bigger structure of the consolidation which it's very difficult to identify Elliott wave count. However, there is a powerful strategy that we have been using overtime to solve this problem using Fibonacci retracement count.
If we look at the start of current bottom, we know that the price is still constantly forming a higher low and higher high structure over time which is also becoming the characteristic of the bullish upside movement.
First we use Fibonacci retracement tool to measure how deep the correction on each wave that has occurred.
On the first wave, we can see that the higher low structure is located at the .786 Fibonacci retracement level before the price bounce and forms the higher high.
Second wave is similar with the first wave's characteristic which it's also having bounce right at the .786 Fibonacci retracement level before it claimed another higher high structure.
For the last pair of this wave structure, it shows us a slightly gaining momentum which the price was having bounce right after it touched the .618 Fibonacci retracement level as the golden ratio level (one level above the .786 Fibonacci retracement level).
There is also a strong support trend line that has been holding current structure since it formed a new bottom low this year which hasn't been breached, that's why this could be a strong support trend line that can hold the price.
Based on all of the facts above, the conclusion is that bitcoin's price is now getting strong momentum for bullish structure which there might be another impulse wave to the upside.
Also, we can analyze based on the fractals whether the upside bias is still valid or not. Based on the previous fractals, we conclude that all the price action had bounces right after it touched the area between the golden ratio and .786 Fibonacci retracement level. That's why we can assume that the next area between golden ratio and .786 Fib level as the strong and crucial level for current correction movement (In this case, the area between $22222 - $21540 as the strong area of support) with the main target is in alignment with the .786 Fibonacci retracement level in higher degree,
Note
Happy Monday, Bitcoin is now looking even better with the price has already broken out above the lower cycle's resistance trend line as a possible triangle pattern which makes it an APEX formation.
This is a perfect bullish sign for the bitcoin as it simply means that the price has been successfully defended the structure of higher low which is super bullish on this structure.
The price behavior is in alignment with our previous analysis which we projected how the momentum shifted from the bearish into bullish. Next resistance zone will be located at the area around $24000 - $24500 as the interim swing high. If the price can break above current resistance zone, we will see huge bullish upside movement to the given target at $29000 range.
Note
Quick update about bitcoin which we see huge the price is having huge volatility at current structure. While the price is trending closer to the APEX, we see major volatility which is the result of manipulation.
Just like what we anticipated on previous analysis, we also said that the rejection toward the resistance was nothing because the price is still trending right at the APEX and we may see huge volatility coming on every time it is trending closer to the APEX.
Our bias is still the same as before in which we anticipated a possible break out to the upside as the bullish structure is still there with the continuous higher low structure.
Still we need time to enter more of long position and wait patiently while the price is trending closer to the APEX of this crossing point
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