$BTC reached the reversal area. EW, candles and indicators suggest that it goes down from here. The most typical pullback – to $34000-36000. Let’s explore the details from various angles.
From the weekly forecast on Saturday: “There is a possibility that $BTC makes 4-6 more green days.” $BTC made 10 in total! Now it’s time for a retrace.
The previous Weekly Analysis – link at the end of this post.
Today’s candle is the tenth consecutive green one. This is a bearish formation. Volume and a few other indicators support the hypothesis.
My only concern is that the pullback happens slowly enough, so that the monthly and weekly candles that are to be shaped tomorrow do not turn into the bearish candles (they are still bullish as I type).
There are several possible outcomes and it is better to wait until the candles are finally shaped.
$BTC almost ideally followed the EW channel and levels that I outlines a week ago. Wave (1) is perfectly complete and now it is time to start a pullback.
The most typical retrace is 0.5-0.618 of the length of the motive wave. In our case – $34000-36000. I marked the area with the darker green rectangle.
However, pullbacks of 0.236 or 0.786 are not uncommon: $32000-39000. Light green rectangle.
Waves (2) are very difficult to forecast from the depth, shape, and timing perspectives. The candles will be my guiding light for wave (2).
I am very curious about the monthly and weekly candles that will be formed tomorrow. There are several options for both bullish and bearish continuation, depending on the formations.
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Previous Monthly Analysis: