Bitcoin Sunday's update : Updated EW, When to enter the short
Hello all, here it is I provide you the chart work of bitcoin for lower time frame, I want to cover the short term bias and the new EW count that could be more valid than my previous count.
If you've seen my previous analysis about bitcoin's expanding wave diagonal, you will now that in the C wave, we can see some other structure beside the expanding wave, the structure is the rising wedge structure which usually give a sign that the bulls are exhausted at this level. And here is the elliot wave count that potentially forms this rising wedge structure. gray area is the strong resistance and the green area is the liquidation area for short.
And based on my count, there is more likely that the price will have 1 more wave up to complete the 5th wave and with the divergence on the RSI and MACD that I've mentioned in my previous analysis, I do believe that after a wave to touch the gree zone has finished, there will be a violent drop with the TP attached on the chart.
And the criteria of short entry ONLY if the price breaks down of the yellow support trend line mentioned in the chart. Otherwise, I'll stay idle in this current structure. For more information that the open interest has touched the $1 billion level and the $9900 - $10000 region is having a very thick sell wall on most exchanger.
If you've seen my previous analysis about bitcoin's expanding wave diagonal, you will now that in the C wave, we can see some other structure beside the expanding wave, the structure is the rising wedge structure which usually give a sign that the bulls are exhausted at this level. And here is the elliot wave count that potentially forms this rising wedge structure. gray area is the strong resistance and the green area is the liquidation area for short.
And based on my count, there is more likely that the price will have 1 more wave up to complete the 5th wave and with the divergence on the RSI and MACD that I've mentioned in my previous analysis, I do believe that after a wave to touch the gree zone has finished, there will be a violent drop with the TP attached on the chart.
And the criteria of short entry ONLY if the price breaks down of the yellow support trend line mentioned in the chart. Otherwise, I'll stay idle in this current structure. For more information that the open interest has touched the $1 billion level and the $9900 - $10000 region is having a very thick sell wall on most exchanger.
Comment:
We have seen a breaking down action of bitcoin.
We have seen a breaking down action of bitcoin.
Continuing the previous bias on bitcoin
Just like what you've seen yesterday and what I've already anticipated, 1 more spike to the upside has already formed and on the 4 hours chart we've seen a hanging man candle giving a sign of the bulls are getting exhausted.
Beside that, the MACD histogram still printing lower high. For the RSI, nothing has changed from the previous bias with a potential bearish divergence.
Although the price has sustained above the $10000 region in the last 12 hours, I still have a lot of concern with the liquidation zone (green). There will be a huge volatility occurs in this area.
Yellow line is still becoming the key support trend line to enter short position. For now, waiting patiently for the break down of the yellow support trend line.