Today $BTC confirmed the Bullish Engulfing. Expect the rally to continue. What is next? Let’s explore the options from different angles.
Two days ago I forecasted a reversal and $BTC has rallied since. Today’s strong bullish candle confirmed the Bullish Engulfing formed yesterday.
The 20 EMA line supported the candle today and it closed above 8 EMA and 50 MA. Volume and a few other indicators support further upwards movement. If $BTC makes another green comparable candle tomorrow, we could see a Three White Soldiers.
Odds: Strong Bullish
Elliott Waves and Forecast
From the perspective EW, there is a good chance wave (3) is underway and this hypothesis is supported by at least one indicator. If one more joins tomorrow, it would add more confidence.
Assuming that waves (1) and (2) complete, a simple EW projection suggests the following targets:
– for wave (3) – $58000-60000
– for wave (5) – $68000-70000
I also used another method to project the length of wave V based on waves I-IV and arrived with this number: $69051.4. It greatly aligns with the $68000-70000 interval and I am wondering how accurate it could be.
There are two possible channels based on the most outstanding points. The green one – primary, and the red one – alternative.
In the monthly forecast I mentioned the possibility of an extremely aggressive wave V that would end in August. This would be for the red channel.
I think the next few days could give us an answer about the channel slope.
Below is the long term forecast that remains unchanged for over 4 months. Let’s see how this current rally fits into the long term channel and the targets.
Previous Monthly Analysis:
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