Bitcoin Bulls Not Retreating After Reaching All-Time High
Bitcoin (BTC/USD) is showing massive bullish momentum as expected in earlier analysis. Price action is moving away from the 21 ema zone without any hesitation.Will price action continue or will there be a pauze?
Price Charts and Technical Analysis
The BTC/USD rocket has broken above the 78.6% and 88.6% Fibonacci retracement resistance levels. Price action will probably test the previous top and all time high soon.
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But the top is likely to stop price action for a little while:
- Some minor bearish pullback is expected as bulls take profit.
- The retracement will probably create a bull flag chart pattern (orange arrows).
- An immediate breakout above the top without a flag indicates very strong bullish momentum.
- If a flag pattern does appear on the 4 hour or daily chart (does not have to be a weekly chart), then a bullish breakout is expected.
On the 1 hour chart, price action is moving sideways. This seems to be an ABC (red) pattern in wave 4 (green).
Price action broke above the 21 ema zone and used it as a bouncing spot. Now the price is above the 21 ema. A breakout above the Fractal could indicate an immediate upside (green arrow).
A bearish breakout below the 21 ema, however, could indicate a deeper retracement (orange arrow). This could indicate an extended wave 4 (green).
Good trading,
Chris Svorcik
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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