-
Bitcoin (BTC/USD) has tested and bounced upwards from the 21 ema support zone. We will review when the uptrend is expected to fully return.
-
The main question is whether BTC/USD has already completed its wave 4or not. This will determine whether Bitcoin could offer more bearish pullback or a bullish breakout
-
Price action needs to break below the 21 ema support zone to potentially start 5 bearish waves down. This could complete a wave C (grey) of wave 4 (pink)
This article will also analyse the key Fibonacci levels and potential discounts within the uptrend.
Price Charts and Technical Analysis
-
A bullish breakout above the resistance trend line (orange) followed by a bull flag chart pattern is increasing the odds of an immediate uptrend (green arrows).
-
A bearish bounce, however, could indicate an ABCDE triangle chart pattern (grey arrows) which is expected to break up (green arrows).
-
A bearish bounce could also create a larger retracement to the lower Fibonacci retracement levels like 50-618% Fibs. A bullish bounce is expected at this support (blue arrows).
The uptrend remains intact as long as price action remains above $20,000. A deeper push lower, however, would place the bulls under pressure (yellow and red circles).
On the 4 hour chart, price action needs to break below the 21 ema support zone to potentially start 5 bearish waves down (orange). This could complete a wave C (grey) of wave 4 (pink). The Fibonacci levels are expected to act as support (blue arrows).
An immediate breakout could take place too (green arrows) above the bull flag chart pattern (orange and green lines). Although the Fibonacci resistance could spark a downside momentum as well (red arrow).
Price patterns remain key after any breakout to confirm the breakout direction or indicate a false breakout.
The main target for the upside is currently around the $50,000 round level.
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
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.