-
Our original analysis on Bitcoin (BTC/USD) favored a bullish break above the 21 ema zone but a bearish swing is already testing the previous bottom near $47k.
-
On the 4 hour chart, price action seems to be building a bearish ABC (pink) zigzag pattern with 5 waves (grey) in wave A (pink).
-
The uptrend remains valid as long as price action stays above the 50% Fibonacci level. A break below places the uptrend on hold.
Bitcoin made a bearish breakout rather than a bullish break as we expected.
This shows how strong and important the 21 ema zone really is: price action was unable to break above the bearishly angled 21 emas. Let’s review the new situation.
Price charts and technical analysis
Our original analysis on Bitcoin (BTC/USD) favored a bullish break above the 21 ema zone but a bearish swing is already testing the previous bottom near $47k.
-
Price action made an immediate bearish swing instead as it used the 21 emas as a resistance zone.
-
This means that the price action seems to be completing a bearish ABC (pink) pattern as we expected, just a little bit sooner. Also, the wave B is weaker than expected.
-
If our outlook is correct, then the ABC (pink) should complete a wave 4 (purple) pullback.
-
The wave 4 (purple) could already be completed (green arrows) or make one lower low to tag and hit the 38.2% Fibonacci retracement level. A bounce confirms it (blue arrows).
-
The uptrend remains valid as long as price action stays above the 50% Fibonacci level. A break below places the uptrend on hold (orange button) and a deep retrace invalidate it (red button).
On the 4 hour chart, price action seems to be building a bearish ABC (pink) zigzag pattern with 5 waves (grey) in wave A (pink):
-
The current bullish bounce could be wave 4 (grey) in wave C (pink) as long as price action remains below the 21 ema zone.
-
A bullish breakout (green arrows) could invalidate the bearish wave 4-5 outlook and indicate an immediate uptrend.
-
A bearish breakout (orange arrows) could create one lower low to finish wave 4 (purple).
-
A bullish bounce after the lower low (blue arrow) could indicate the end of the retracement.
The analysis has been done with the ecs.SWAT method and ebook.
Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.