Bitcoin - Analysis - Potential Reversal - Levels to Watch
Analysis:
Daily: we can clearly see that bitcoin has moved into the bullish half of the keltner channels, we can also see that we are extended, tagging the 3rd Keltner channel, this suggests that near-term it is not unexpected to see either consolidation and sideways movement, or some mean reversion.
3D: slightly further out to the 3 day interval we can see that we are again within the bullish half of our Keltner channels, with room to move higher, upwards to around the $9,500-$10,000 before we tag our 3rd Keltner channel. It is also worth noting that we do have rising volume accompanying this move, however it is nothing to get excited by just yet, as this volume is only marginally above average.
Weekly: looking at the weekly chart we can see that we HAVE NOT yet decidedly reclaimed the bullish half of the Keltner channel, however we have broken above the top descending trendline of the falling wedge pattern that i outlined in my prior analysis. The weekly is a key timeframe to watch, because if we can close above the 21ema (mid point of the channel) then this would lend more strength to the bullish reversal argument. It is also worth pointing out that we are close to the 38.2% retracement ($9,265) of this most recent pullback, this may very well be the point where this move begins to struggle, in any case it will be interesting to see how price responds to this level (if at all).
Monthly: on the monthly we can see that we have seemingly bounced off the channel midpoint, this is crucial, because if this reversal can get legs and hold the price action, this would confirm what I and several others have asserted, which is that this most recent move to $14,000 and subsequent pullback may have been the first of 5 Elliot waves in this most recent bull market after the 90% crash in 2018-19.
Summary:
- Bitcoin on lower time frames undoubtedly looks bullish, albeit a little bit extended
- Higher time frames (weekly and above) have yet to confirm this as a bullish reversal, but the monthly does suggest that we may be bouncing off the 21 ema.
- Overall Bitcoin is looking like it is attempting to put in a reversal, but until this is confirmed on more substantive time frames it is not time to get overly excited
- The Weekly DMI has also just crossed positive, this also lends credence to the bullish reversal argument (indicating that the trend is changing from bearish to bullish)
Daily: we can clearly see that bitcoin has moved into the bullish half of the keltner channels, we can also see that we are extended, tagging the 3rd Keltner channel, this suggests that near-term it is not unexpected to see either consolidation and sideways movement, or some mean reversion.
3D: slightly further out to the 3 day interval we can see that we are again within the bullish half of our Keltner channels, with room to move higher, upwards to around the $9,500-$10,000 before we tag our 3rd Keltner channel. It is also worth noting that we do have rising volume accompanying this move, however it is nothing to get excited by just yet, as this volume is only marginally above average.
Weekly: looking at the weekly chart we can see that we HAVE NOT yet decidedly reclaimed the bullish half of the Keltner channel, however we have broken above the top descending trendline of the falling wedge pattern that i outlined in my prior analysis. The weekly is a key timeframe to watch, because if we can close above the 21ema (mid point of the channel) then this would lend more strength to the bullish reversal argument. It is also worth pointing out that we are close to the 38.2% retracement ($9,265) of this most recent pullback, this may very well be the point where this move begins to struggle, in any case it will be interesting to see how price responds to this level (if at all).
Monthly: on the monthly we can see that we have seemingly bounced off the channel midpoint, this is crucial, because if this reversal can get legs and hold the price action, this would confirm what I and several others have asserted, which is that this most recent move to $14,000 and subsequent pullback may have been the first of 5 Elliot waves in this most recent bull market after the 90% crash in 2018-19.
Summary:
- Bitcoin on lower time frames undoubtedly looks bullish, albeit a little bit extended
- Higher time frames (weekly and above) have yet to confirm this as a bullish reversal, but the monthly does suggest that we may be bouncing off the 21 ema.
- Overall Bitcoin is looking like it is attempting to put in a reversal, but until this is confirmed on more substantive time frames it is not time to get overly excited
- The Weekly DMI has also just crossed positive, this also lends credence to the bullish reversal argument (indicating that the trend is changing from bearish to bullish)
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