BTC/USD slowed down for a correction within uptrend
|Today we will talk about Bitcoin, and describe the price action from a technical point of view, from Elliott Wave perspective to be precise.
Cryptocurrencies are up, but ALT coins not so much, so strong rally on BTCUSD is mainly because of BTC dominance, which we see it still dominating in the future. It also means that BTC may easily remain in the uptrend.
If you are familiar with Elliott Wave, then you know that impulsive wave structure consists of five waves. If you look closely, you will notice that recent extended rise caused a break above the base channel resistance line, so it is confirmation that this was wave III and that price is currently consolidating within wave IV before the uptrend for the final wave V resumes. Wave IV correction can be sometimes very complex, so at this stage we are observing two possible scenarios. Either we will see a sideways price action like a triangle pattern, or we will see a flat correction that can retest 16000 support level. But in both cases be aware of the final push to a new high as long as price trades above 12500, but on the other hand move beneath 14000 would already be an important level to change the view.
Keep in mind that bitcoin is very volatile when looking back on a higher degree charts, so do not just buy and HODL here, because we still think that price is high, for HODL much better is to buy low. At this stage, a lot of traders and investors are seeing a lot of upside potential, but only a few are aware of a downside risk.
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