BTC/USD - Upside OpportunitiesTraders I recommend reading this entire post so that you fully understand what I have done, and how I have came to my analysis.
BTC/USD looks like a long opportunity on the 4H chart.
After analyzing this pair, I discovered that price appears to be moving in patterns. Price seems to move up, have a corrective move, and then move up again, exceeding the previous top by around 400 points every time.
With this logic, I was able to predict and plot the next move on the chart. I have calculated each cycles move by measuring the amount of points it moved up before correcting. After I found there was an approximate 400 point move before each correction, I was then able to replicate a cycle at around 400 points to see the future direction of the instrument.
I am expecting an up move of 400 points which will complete at around 8780. Below I have illustrated the calculations as to how I came to this conclusion.
The principle of the cycles being used here is that every time there is an up move, there is a corrective move, and then an up-move which exceeds the previous move by approximately 400 points. With this information we can calculate (using cycles 1+2 data) where cycle 3 is likely to end up. Using the calculations below we can make a mathematical assumption as to where price will lead.
Cycle 1 = Cycle + 400 = 7980
Cycle 2 - Cycle 1 + 400 = 8380
Cycle 3 - Cycle 2 + 400 = 8780
Following these calculations, we can expect a reliable short term up-move, using previous trend cycles to predict a reliable, yet conservative move.
Do remember that price may correct before cycle 3 initiates. So it is important that you watch this trade carefully before considering a position.
I will be posting updates on this trade below, so leave it a like or follow so that you can keep up to date with this analysis.
