๐Ÿ”ฅ Bitcoin Bulls Not Retreating After Testing All-Time High ๐Ÿ”ฅ

3 min read

Dear traders,

Bitcoin (BTC/USD) is showing massive bullish momentum as expected in earlier analysis. Price action is moving away from the 21 ema zone without any hesitation.Will price action continue or will there be a pause?

Price Charts and Technical Analysis

The BTC/USD rocket has broken above the 78.6% and 88.6% Fibonacci retracement resistance levels. Price action will probably test the previous top and all time high soon.ย 

But the top is likely to stop price action for a little while:

  • Some minor bearish pullback is expected as bulls take profit.ย 
  • The retracement will probably create a bull flag chart pattern (orange arrows).ย 
  • An immediate breakout above the top without a flag indicates very strong bullish momentum.
  • If a flag pattern does appear on the 4 hour or daily chart (does not have to be a weekly chart), then a bullish breakout is expected.

On the 1 hour chart, price action is moving sideways. This seems to be an ABC (red) pattern in wave 4 (green).ย 

Price action broke above the 21 ema zone and used it as a bouncing spot. Now the price is above the 21 ema. A breakout above the Fractal could indicate an immediate upside (green arrow).

A bearish breakout below the 21 ema, however, could indicate a deeper retracement (orange arrow). This could indicate an extended wave 4 (green).

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.

Good trading,
Chris Svorcik

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