Weekly Bitcoin Update
Updated
Its been an interesting week in the financial sector across the globe, a lot of fear and doubt in the global economy right now with the corona virus, banks, unemployment and trade wars.
A lot of people putting focus on that being the cause of some of the movements in the crypto market and although it may have a slight effect i don't see it as being the root cause, when in reality its no different the every other time bitcoin has done something similar.
Anyway onto the technicals....
The main focus is on the HTF trend analysis which still has a bearish bias over all with a series of swing high failures, and lower lows pushing further into the gutter channel.
The retracement from the last daily point points pits the 618 level around $7880 USD which also coincides with a major supply block between 7500 and 7900 so this is the major target Im looking at right now for the next big more.
I an see a fairly easy picking EW count using trend based fibs and its pretty close to sticking to the rules right now currently on the E retracement leg looking for one last rally up to the 1.61 extension completing the 5th wave.
We will be paying close attention to this point to load up on a larger short position with the intention of the current HTF trend continuing and making another Lower Low deep into the 3k barrier but the ideal point to re-asses the situation is around the $5400 mark right now.
If we can hold support in this level and see bullish activity or a momentum switch on the HTF i will consider the long approach.
Playing the short term long right now and looking to close as we get closer to the supply block and stagger out of the position, don't want to miss the out.
A lot of people putting focus on that being the cause of some of the movements in the crypto market and although it may have a slight effect i don't see it as being the root cause, when in reality its no different the every other time bitcoin has done something similar.
Anyway onto the technicals....
The main focus is on the HTF trend analysis which still has a bearish bias over all with a series of swing high failures, and lower lows pushing further into the gutter channel.
The retracement from the last daily point points pits the 618 level around $7880 USD which also coincides with a major supply block between 7500 and 7900 so this is the major target Im looking at right now for the next big more.
I an see a fairly easy picking EW count using trend based fibs and its pretty close to sticking to the rules right now currently on the E retracement leg looking for one last rally up to the 1.61 extension completing the 5th wave.
We will be paying close attention to this point to load up on a larger short position with the intention of the current HTF trend continuing and making another Lower Low deep into the 3k barrier but the ideal point to re-asses the situation is around the $5400 mark right now.
If we can hold support in this level and see bullish activity or a momentum switch on the HTF i will consider the long approach.
Playing the short term long right now and looking to close as we get closer to the supply block and stagger out of the position, don't want to miss the out.
Note
Kind of a failed attempt here to complete the EW set up by dropping past the ideal retracement point, but still holding major support levels, going to see how this plays out and still looking for that supply zone for the ideal short entry.give it some time
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