Is the Bitcoin dream at the mercy of the bears or bulls?
It's Wednesday, traders, and I still see a significant amount of disbelief and fear that this rally will fail. While there are never any guarantees in trading, it is a promising sign. Remember, the market reverses when people are euphoric or fearful. The overall sentiment right now is that this is already a failed rally and that price will retreat to sub-$5000 price levels, even though price has breached the descending wedge's resistance. Make sure you are trading responsibly if you are in the market right now because these potential reversals can result in significant losses if you don't.
As we discussed yesterday, I believe Bitcoin may have one more subwave up toward $8600/$8700 before retracing for Wave 4. Price has, so far, landed near the diamond support I drew yesterday morning as seen on this 6H chart. The ascending channel gives price room to reach the $9500/$9600 area for Wave 5, which is the expected target and is also the new weekly resistance area as well as the target from the larger IHS. Additionally, the 3.618 fib extension from Wave 1 is at $9597.90. Drawing trend-based fib extensions off of Wave 2 and the proposed Wave 4 gives 3.618 and 2.618, respectively, fibs at the same ~$9590 area thereby suggesting a strong likelihood of price targeting it. However, Wave 3 must be completed first which would be the $8600/$8700 target, followed by a Wave 4 target of $7800/$7900. We can see hidden bullish divergence printing on this TF as a result of higher lows in price and lower lows in RSI (denoted by the blue arrows). There's still 4 hours left in this current candle, so anything can happen, but if it follows through as it currently sits, then it is potentially significant enough to give price the boost it needs to reach that Wave 3 target due to this higher TF. OBV continues printing higher highs and lows in unison with price suggesting that the trend is legitimate. However, a breach of the $7700/$7800 level significantly increases the chances of a further drop in prices which could result in fear taking over and price testing previous lows.
While I feel this is likely the way price will continue moving, I am not here to give you buy and sell signals nor convince you that you are right or wrong. There are no guarantees so risk management remains key. Those who tune into our daily live streams or TA videos know that I often consider other points of view as I stream, this way I can provide as much information as possible to our viewers so that they can make the most informed trading decisions for themselves. But I also update these charts on TV if something significant happens during the day, so make sure you're following us here and liking the chart so that you get notified if I do post more info. Have a great day, traders!
As we discussed yesterday, I believe Bitcoin may have one more subwave up toward $8600/$8700 before retracing for Wave 4. Price has, so far, landed near the diamond support I drew yesterday morning as seen on this 6H chart. The ascending channel gives price room to reach the $9500/$9600 area for Wave 5, which is the expected target and is also the new weekly resistance area as well as the target from the larger IHS. Additionally, the 3.618 fib extension from Wave 1 is at $9597.90. Drawing trend-based fib extensions off of Wave 2 and the proposed Wave 4 gives 3.618 and 2.618, respectively, fibs at the same ~$9590 area thereby suggesting a strong likelihood of price targeting it. However, Wave 3 must be completed first which would be the $8600/$8700 target, followed by a Wave 4 target of $7800/$7900. We can see hidden bullish divergence printing on this TF as a result of higher lows in price and lower lows in RSI (denoted by the blue arrows). There's still 4 hours left in this current candle, so anything can happen, but if it follows through as it currently sits, then it is potentially significant enough to give price the boost it needs to reach that Wave 3 target due to this higher TF. OBV continues printing higher highs and lows in unison with price suggesting that the trend is legitimate. However, a breach of the $7700/$7800 level significantly increases the chances of a further drop in prices which could result in fear taking over and price testing previous lows.
While I feel this is likely the way price will continue moving, I am not here to give you buy and sell signals nor convince you that you are right or wrong. There are no guarantees so risk management remains key. Those who tune into our daily live streams or TA videos know that I often consider other points of view as I stream, this way I can provide as much information as possible to our viewers so that they can make the most informed trading decisions for themselves. But I also update these charts on TV if something significant happens during the day, so make sure you're following us here and liking the chart so that you get notified if I do post more info. Have a great day, traders!
