BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Today i wanted to show you a different way to spot reversals and change of macro trends. You know I love Elliott Wave but today will be less about EW. So Starting from the top. Back in February BTC was starting loosing steam at the top ( volume ) retail investors were foming in and the first reversal pattern was forming, the 3 mountains. This was the first hint of a top, after breaking the first trendline BTC then completed a major Head n Shoulder, this one was the final signal of a top, once the support line was violated the prize collapsed. Also we can see how we can use the 50MA to spot reversal. Back on may the prize violated the 50 MA which worked as a support for the whole wave up. Once broken the prize dipped dramatically. Now let's see were BTC is standing now...We are currently trading in a range at 30k-40k. We can see BTC is now approaching the 50MA on the basis that the previous time this moving average has worked as a reversal indicator we can assume that there is a high probability that the prize breaking this MA with good volume will be a sign of reversal I think this will be violated in the short term (next few days) as BTC is completing an ascending wedge . However in the short term after BTC touching the 39 k will then dip down to 32k one last time before to resume the bull market (do not be surprise if the move back to 32k will be a painful one). After the pull back BTC will have completed an iHnS which will project us to 45k, flirting with the 200MA and the major trendline. After that will be rockets. Be prepared to enjoy the SUMMER.
Make sure to read the various notes on the chart to better understand.
Share the chart if you like it or leave a comment to discuss it.
Have a great day

Related Ideas

Comments