Bitcoin (BTC) Day Chart
Based on the daily chart, I have two possible scenarios in mind.
In scenario 1 (yellow) we are nearing the end of this bullish movement. As soon as we get a firm rejection in the region ($ 18,900 – $ 21,000), I assume that we can describe this move upwards as an ABC correction.
After an ABC correction, in principle 5 waves follow against the dominant trend.
In scenario 2 (green) the zone ($ 21,300 – $ 21,400) is very important. As soon as we close a daily candle above this zone, I must see this green wave as an upward momentum whereby the third wave is higher than the 1.618 (indicated in the blue box).
If you see this play out, another wave 4 will follow down, and this fourth wave can retrace 23.6% – 61.8% compared to the third wave. Possible targets for this cannot yet be determined, as we do not yet have a top for wave 3.
Bitcoin (BTC) 4-hour chart
Based on the 4-hour chart, I think it is likely that we are currently in a triangle. I see in both directions, both up and down corrections arise (ABC).
This is one of the conditions for a triangle, a triangle consists of 5 movements. These 5 movements are in turn divided into 3 waves.
The RSI indicator shows a hidden Bullish divergence (lower low in RSI / Higher low in price). If this triangle breaks up, a possible target could be $ 20,900.
“Stay Above $ 17,000 For Bullish Momentum”
In the short term, once Bitcoin holds $ 17,000, things will look bullish for the foreseeable future for the time being. In the medium term, watch out as soon as the price approaches the $ 21,300 – $ 21,400 zone, because then a correction is looming.
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Disclaimer: Bitcoin Magazine NL does not offer financial advice. The articles are intended for educational purposes.