Bitcoin's Path to ATH: MAs, Fib, Elliott Waves, Confluence
After bitcoin's break out of the inverse head and shoulder's pattern, and it's retest of the 0.236 fib, it's probably a fair assumption that we can gain as to predicting bitcoin's future path through seeking guidance from fibonacci's rules and a rudimentary application of Elliott Wave Theory.
We can expect that bitcoin is going to retest the 6800 level to confirm support, before breaking through the 0.236 to test the 0.382. It is very interesting to see that the 0.236, 0.382 coincide with the 50-day (light blue), 100-day (purple) moving averages, while the 200-day (navy blue) is sitting between the 0.382 and 0.5 at about $8500 but does coincide with a breakout above the bearish side of out cup and handle pattern. So, we can assume that until we break out above $8500 there will be a high degree of confluence.
A strong close above $8500 will signal a break above the 200-day moving average, and I would go so far to say that we may be able to expect an extended 5th wave up to our key resistance level of $11800, before having two waves down and completing our first major bullish Elliott Wave for the year. After 2 waves down, we may see a repeat of out inverse head and shoulders pattern so that we can gain some momentum and confidence and finally smash through $11800. From there, extended 3rd and 5th waves baby, back to ATH before Christmas.
This is my plan. Good luck guys.
We can expect that bitcoin is going to retest the 6800 level to confirm support, before breaking through the 0.236 to test the 0.382. It is very interesting to see that the 0.236, 0.382 coincide with the 50-day (light blue), 100-day (purple) moving averages, while the 200-day (navy blue) is sitting between the 0.382 and 0.5 at about $8500 but does coincide with a breakout above the bearish side of out cup and handle pattern. So, we can assume that until we break out above $8500 there will be a high degree of confluence.
A strong close above $8500 will signal a break above the 200-day moving average, and I would go so far to say that we may be able to expect an extended 5th wave up to our key resistance level of $11800, before having two waves down and completing our first major bullish Elliott Wave for the year. After 2 waves down, we may see a repeat of out inverse head and shoulders pattern so that we can gain some momentum and confidence and finally smash through $11800. From there, extended 3rd and 5th waves baby, back to ATH before Christmas.
This is my plan. Good luck guys.