The bulls are holding onto a strong wall at the $225-$228 mark. After last week’s 7.5% drop and a nice rebound full of money making opportunities, the wall is still taking a massive beat down.
ninjabenja on tradingview points out in his bitcoin price analysis:
The bearish trend appears to have won out yet again, with price slumping away from what was a half hearted attempt by bulls this past month. On the horizon is this beautiful bullish Gartley and even now price is curling in towards completion at just above $180.
Here we see prior instances of consolidation on a weekly scale. Shown circled are three consecutive weeks of price consolidation, yielding lower with each new candle close. Of note is the sharp sell-offs which have followed. We are now emerging from the sixth such consolidation, this time lasting 4 weeks. RSI illustrates clearly where we have broken bullish momentum in previous circumstance and in each instance the end result being a new lower low.
What this means is that it seems that the bulls have failed in using the momentum they had a few days ago to push the price past the $240 point to signal a change of trend. It seems that a viable trade plan is to short to a new low, then await confirmation to enter a long position.
On the other hand, if one was to analyze the market with Elliot waves you could see that we the triangle waves which are similar to the Ending Diagonals patterns which are part of the Elliot Waves.
Taken from stockcharts.com:
The ending diagonal is a special type of wave that occurs in Wave 5 of an impulse, or the last wave of a correction pattern – Wave C of an A, B, C correction. This wave often occurs when the preceding move of the trend has gone too far, too fast and has run out of steam. In all cases, they are found at the end of the higher degree motive or corrective wave. This wave pattern indicates the termination of the previous trend of one higher degree.
The more popular position is currently a short to a new low. However those that can predict the end of a year long downtrend will come up the most when the time comes. If you liked this article follow us on twitter @themerklenews and subscribe to our newsletter to receive daily bitcoin and altcoin market analysis to help you with your trading strategies!
Imagesource: Shutterstock
Disclaimer: Articles regarding the prediction of the price of bitcoin or any other cryptocurrencies are not to be treated as trading advice. Neither TheMerkle, not the author assumes any responsibility for trading losses that may or may not incur. Always remember to make trades that you can afford to loose.
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