As I warned, $BTC decided to take a pause. The candle today likely signals a short and not very deep pullback. What’s next? Let’s explore all details from different angles.
Yesterday I suggested that $BTC could take some time to consolidate. It is happening as I type.
The candle could be viewed as a weak Bearish Harami. The odds are barely on the dark side and indicators have not moved much. We could possibly see another red candle tomorrow. As long as it does not close below $42611, there are no reasons to get concerned. However, if it does, the odds will become strongly bearish.
Elliott Waves + Forecast
Wave (3) is likely underway and all time frames point upwards.
The target for wave (3) – $58000-60000.
Wave 1 of (3) is likely done and $BTC works on wave 2 of (3). The wave seems to have all qualities of a zigzag and is expected to end in the green rectangle – $42-43k. If it does so, expect a very strong wave 3 of (3), the heart of the rally – a few days of 10+% would be normal.
It is still not clear whether $BTC decided about the channel. If wave 2 takes less than 2 days, expect the red one.
The more aggressive red one would lead the wave (5) to completion in August. The green one – most likely in September.
Alternatively, there is a chance that the current wave is still part of a bigger wave IV as marked on the long term chart. This count could become main operative if $BTC closes tomorrow below $42611.
Previous Monthly/Weekly Analysis:
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