-
Bitcoin (BTC/USD) made a new lower low as expected in our previous wave analysis. The strong bullish bounce could indicate the temporary end of the bearish pullback.
-
Price action is facing a key resistance trend line (orange) after a strong bullish impulse up. Considering the recent price action, the bulls seems to be back in control.
-
At resistance, price action could make a pullback (orange arrows) but a bullish continuation is expected (blue arrows).
This article reviews how the uptrend might take shape in the next upcoming week.
Price charts and technical analysis
The BTC/USD chart is showing a complete 5 bearish waves down (orange) in wave 5 (grey) of wave A (pink). The alternative is an ABC (red) pattern down:
-
A bullish ABC up could indicate a wave B (pink). In that case, another price swing down could be a wave C (pink).
-
Considering the strength of the uptrend on the higher time frames, the pullback in wave C could be shallow.
-
A 5 wave pattern (rather than an ABC) could indicate a wave 1 and wave 2 rather than B and C. This scenario is also bullish.
-
An immediate push up (green arrow) is likely to test the resistance zone (orange box).
-
A bearish bounce could decline to test the support (blue box) and inverted head and shoulders level.
On the 1 hour chart, price action is facing a key resistance trend line (orange) after a strong bullish impulse up. Considering the recent price action, the bulls seems to be back in control:
-
The bearish wave 5 seems completed.
-
The bullish price action is showing larger bullish candles with closes near the high, indicating bull control.
-
Price action managed to break above and away from the 21 ema zone, which changed the angle of the 21 emas to up.
-
Either a breakout (green arrow) or a bounce up after a pullback (orange and green arrows) is likely.
-
The next target is the Fibonacci levels and resistance zone (red box).
-
At resistance, price action could make a pullback (orange arrows) but a bullish continuation is expected (blue arrows).
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.