With the bearish flag forming and holding as a strong support, bouncing many times. I personally believe that a strong downward movement is imminent as it cannot continue to hold. Each time it attempts to uptrend the 55 ema (yellow line) acts as a strong resistance. The RSI is forming a symmetrical triangle which is also a sign a large movement in price could occur however doesn't have a bias to up or down.
I'm targeting a 1:1 Fibonacci extension of the 1st wave down to reach wave 3, at the moment it's moving sideways, however, this is due to the bearish flag.
The 5th wave down is targeted at 1.618 Fibonacci extensions of wave 1; this travels just past the 0.618 Fibonacci retracements of the 5 step impulse wave up. This is the golden ratio where the price likes to drop to as many traders use this level. Between these levels is the support of wave 2 which adds even more strength to this zone
Long term I remain bullish as if it corrects this far, 0.618 is a normal correction and an impulsive wave up may be next. Up to 13400 USD (From a 1:1 extension of wave 1, as wave 3 is often the longest and never the shortest) and after a correction, a move to 17000 USD is definitely possible.
Of course, the flag may not break and if the price goes above 9750 USD with the volume I would discount this play and the bullish count will be more plausible.
If you want to know the shorts I'm playing, let me know :)
PEACE, LOVE & CRYPTO
I'm targeting a 1:1 Fibonacci extension of the 1st wave down to reach wave 3, at the moment it's moving sideways, however, this is due to the bearish flag.
The 5th wave down is targeted at 1.618 Fibonacci extensions of wave 1; this travels just past the 0.618 Fibonacci retracements of the 5 step impulse wave up. This is the golden ratio where the price likes to drop to as many traders use this level. Between these levels is the support of wave 2 which adds even more strength to this zone
Long term I remain bullish as if it corrects this far, 0.618 is a normal correction and an impulsive wave up may be next. Up to 13400 USD (From a 1:1 extension of wave 1, as wave 3 is often the longest and never the shortest) and after a correction, a move to 17000 USD is definitely possible.
Of course, the flag may not break and if the price goes above 9750 USD with the volume I would discount this play and the bullish count will be more plausible.
If you want to know the shorts I'm playing, let me know :)
PEACE, LOVE & CRYPTO