The .382fib lvl is a very important area. It has been used as support from Nov 16th to Nov 18th. From Nov 19th on we have been forming and holding this ascending channel very well. We touched the .382fib as resistance already yesterday + earlier today and are nearing it again rn!
Now, what happens next?
Well so far we have seen the golden cross where the 21 EMA crossed above the 55 EMA which is definitely a positive sign that supports a bullish breakout! Also we can clearly see how well the 55 EMA was holding as support during the past 24 hrs.
Now what I'm looking for in the very near future are three things: 1) RSI: Bouncing off the trendline in the RSI! 2) PA: A clean breakout above the trendline + the red resistance area! 3) PA: Flipping the .382fib!
With that being said, if we fall out of this ascending channel and if we fall below the trendline in the RSI, this theory gets invalidated and we will most likely see us retesting some of the lower lvls again. And once we have more momentum we will come back and smash through!
We might get a nice Monday surprise:)
Wishing everyone an amazing start into this next week! Will for sure be a great week!🔥
Let's go Champs!👊💯
*Also shoutout to @TechDev_52 on finding the importance of us breaking above the .382fib!🤝
Oh and btw only because I drew a ‚straight’ line to 64.5k & 67k doesnt mean that we will reach these target without any resistances! Like not at all! I just wanted to share a potential breakout target „IF“ we were to break above this ascending triangle!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
1/ When comparing the breakout of the summer 2021 low to current PA, we can find some cool similarities.
After finally breaking above the consolidation zone (0 - .618fib) we went straight up and topped just a small % above 1fib. This top was marked by a clear bearish divergence.
2/
After such a crazy pump out of the summer 2021 lows we had to cool off for a bit before pushing higher. So we then pulled back to around the .764fib.
This cool off bottom was marked by a bullish divergence.
After that pullback we continued our way up.
During the last few days we saw a beautiful top being formed which was also marked by a bearish divergence.
And tbh we did pump quite hard the past few days. A pullback to low 40s is very likely and healthy. in order to push higher we need to regain momentum first.
🧵Here is my take on Elliott Wave Theory in #Bitcoin 's case.
In this thread I am mainly referring myself to Robert Prechter's book "Elliott Wave Principle: Key to market behavior". I have just recently read it again and will be using screenshots of the book to support my ideas.
I think most of us agree on the first 3 waves in the current cycle. Where most of us disagree though is whether we've already had wave 4 & 5 and are now seeing a ABC correction or whether we're still in the wave 4 correction and next up will be an impulsive wave 5 up to new ATHs.
For the bearish case that is how I would count the sub waves:
#BTC - 4HR
Comparison between Sep-21 and Dec-21 for #Bitcoin
You will learn that emotions have not been that different now compared to September (so far). I'll also show you 8 confirmation indicators to watch for to ensure upside continuation.
Enjoy!
Forget about all your emotions first. Start reading this thread with a fresh and objective mind.
Also you'll be deciding for yourself whether it's bullish or bearish. My job is to lay down the facts and your job is to create your own opinion (ignore all subjective comments).
1/ -- Introduction --
To be more exact, we're comparing the two consolidation zones right after the C wave. After every ABC correction #Bitcoin often likes to consolidate for a bit before pushing higher again.
1/3 If 69K was the top it would be the first cycle peak without:
- Price hitting 1 fib curve
- DRSI reaching red area
- StochRSI reaching white zone
- VRI reaching white zone
--> Probabilities in favor of Bull Market still being on
2/3 Let's focus on 🔴 quick, bc that's where we are rn imo. 2013 & 2021 are pretty similar bc both had mid cycle peaks & lows.
🔴in both cycles:
- PA: resistance at .5 fib curve
- DRSI: RSI resistance at middle band
- StochRSI: momentum slowed down
- RVI: Pointed downwards