BTC vs. USD
I hope everyone has had a good week trading so far. As you can see we are looking at Bitcoin vs. Dollar on a 4HR Chart. This could be a really BIG setup. The most important thing to look at is the ABCD pattern that is 1-month in size. I have labeled each part of the pattern A,B,C,D.
Why is this important? Well.. ABCD patterns are known "corrective" patterns. Meaning, after it completes the market should resume it's primary trend, which in this case would be bullish.
One thing I'd like to note is if you look at the CD leg, you will see it has completed 3-Lows, or an Elliott 5 wave, which also means a possible end of a cycle which in this case would be the downtrend of the CD leg completing.
I definitely believe that we are due for a retrace within the next week. The area to watch is $9000 - $9600.
Why?
That is where the Bullish ABCD has completed. We also saw an impulsive move to the upside yesterday after entering this zone. You will also see that right around $9300 there was a very strong rejection (wick) where the sellers struggled to go lower.
The blue bars are a take profit zone, the first take profit is a 61.8% retrace, and the second is a .786 retrace of the CD leg.
I am Bullish on bitcoin for the rest of the month and will be looking to buy all pullback opportunities.
Happy Trading.
I hope everyone has had a good week trading so far. As you can see we are looking at Bitcoin vs. Dollar on a 4HR Chart. This could be a really BIG setup. The most important thing to look at is the ABCD pattern that is 1-month in size. I have labeled each part of the pattern A,B,C,D.
Why is this important? Well.. ABCD patterns are known "corrective" patterns. Meaning, after it completes the market should resume it's primary trend, which in this case would be bullish.
One thing I'd like to note is if you look at the CD leg, you will see it has completed 3-Lows, or an Elliott 5 wave, which also means a possible end of a cycle which in this case would be the downtrend of the CD leg completing.
I definitely believe that we are due for a retrace within the next week. The area to watch is $9000 - $9600.
Why?
That is where the Bullish ABCD has completed. We also saw an impulsive move to the upside yesterday after entering this zone. You will also see that right around $9300 there was a very strong rejection (wick) where the sellers struggled to go lower.
The blue bars are a take profit zone, the first take profit is a 61.8% retrace, and the second is a .786 retrace of the CD leg.
I am Bullish on bitcoin for the rest of the month and will be looking to buy all pullback opportunities.
Happy Trading.