When the indicators align: Confluent reasons to suggest pullback
Updated
Hi all,
It looks like Bitcoins well overdue correction is about to take place, let me share with you my thoughts...
1. Higher highs on price action with lower highs and divergence on Rsi.
This morning we had a strong attempt to breach resistance around 5690 regions which was quickly dealt with forming a lovely bearish rejection candle on hourly.
This was followed by another attempt to breach resistance, again swiftly rejected and ending up with significantly lower high on the Rsi and more bearish divergence.
This price action translated over to Daily intervals to show lower highs and divergence on the RSI
2. Impulse wave confirmed by RSI
We have and lovely and clear 1-5 impulse wave count that is confirmed by Rsi peaks.
3. Price action too far away from 55 and 200 emas.
This isn't the strongest indicator of a correction but its something to note, price tends to want to stick relatively close to the 55 ema and price is currently stretched away from it.
Here are my price targets
Very likely: 1. $5000, there is really strong support here plus it is 38% region of fib retrace.
Likely: 2. $4080 200-day ema and 50% fib. Two strong confluent reasons to establish that target.
Good Chance 3. $4550-4600ish. Bitcoin loves to correct to the 61.8% fib however due to the fundamental interest surrounding cryptos atm I am not sure if it will and if it does I don't expect it to be there long. Also, lots of strong emas around this level.
Let me know your thoughts :)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
It looks like Bitcoins well overdue correction is about to take place, let me share with you my thoughts...
1. Higher highs on price action with lower highs and divergence on Rsi.
This morning we had a strong attempt to breach resistance around 5690 regions which was quickly dealt with forming a lovely bearish rejection candle on hourly.
This was followed by another attempt to breach resistance, again swiftly rejected and ending up with significantly lower high on the Rsi and more bearish divergence.
This price action translated over to Daily intervals to show lower highs and divergence on the RSI
2. Impulse wave confirmed by RSI
We have and lovely and clear 1-5 impulse wave count that is confirmed by Rsi peaks.
3. Price action too far away from 55 and 200 emas.
This isn't the strongest indicator of a correction but its something to note, price tends to want to stick relatively close to the 55 ema and price is currently stretched away from it.
Here are my price targets
Very likely: 1. $5000, there is really strong support here plus it is 38% region of fib retrace.
Likely: 2. $4080 200-day ema and 50% fib. Two strong confluent reasons to establish that target.
Good Chance 3. $4550-4600ish. Bitcoin loves to correct to the 61.8% fib however due to the fundamental interest surrounding cryptos atm I am not sure if it will and if it does I don't expect it to be there long. Also, lots of strong emas around this level.
Let me know your thoughts :)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Note
Looks like this count is invalid and bitcoin either completed a running correction or the dip was part of the 4th wave, or even a very quick correction for the initially counted 5 wavesNote
Check the bullish pattern in the rsi for daily!
Note
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.