Bitcoin has been trading in a sideways pattern the last couple days with swings of moves both ups and downs with little actual gains or losses. In the past I have been very bullish on Bitcoin and my thoughts have not differed. However, I do see a little more downside before we continue our move upward.
Taking a look at this chart you can see the impulse move upward and the current downward move we are trading in right now.
Adding some trend-lines as well as support lines, you start to see a picture of what this chart is doing. If we are looking at this current move as a correction and completion of wave one of the impulse move this downward move should be wave 2. Expecting a 3 part move in this correction would mean the next downward move the one we are in right now should break the low of the previous move as shown by the horizontal blue line.
In the chart you can see a channel made after the first initial impulse move down and we have just broken out of that channel. Now I would not be surprised to see another push upwards before we see another significant impulse move downward.
Looking at the Fib ratio of the first impulse move downward we find a couple of interesting points. First the previous low falls directly on the .786 ratio which makes it a price cluster and we might see completion of the downward move there, however I still believe that we will break that low and find our bottom somewhere around the 8421 level. Once this move is finished we should see more upside that will take us to the top of the bigger flat pattern we are trading within.
Let me know your thoughts in the comments as well as if you would like to see any other stocks or cryptos on my blog. Hope you have a great day and keep making this platform better. Remember tomorrow I will post my contest for the S&P500 closing price.
Other posts:
S&P500: https://steemit.com/blog/@ricjames/daily-update-s-and-p500