Bitcoin Consolidation Almost Complete
In our last bitcoin analysis column, a couple days ago, we postulated that the choppy, sideways movement would continue a couple more days. As of this writing, that has come to pass. However, it seems to me that an advance will begin soon.
Let’s look at the 8-hour chart:
As you can see, pricetime was stopped by the 1st of the 4th arc pair. Price was knocked back, but reversed to positive again at the end of the 3rd square. As of this writing, price is challenging the 2nd of the arc pair.
When/if price closes above the arc pair, another buy signal will be given. I suspect that will happen soon. Take a look at a close-up of that same setup, focusing on the 4th arc pair:
Here you can see more clearly that the 4th arc held on two challenges, but yielded on the 3rd. The 2nd of the pair resisted the first challenge, and is being challenged a second time.
Here is a look at a daily chart:
Starting at the Aug panic low, pricetime was stopped by the 3rd arc pair, but as of this writing has pierced the arc. Of course, until we get a close one the sunny side of the entire arc pair it is too soon to pop the champagne. However, as you may note, tomorrow marks the end of a square, so an acceleration (or reversal) is to be watched for.
Aggressive traders might go long here, but I would counsel that more cautious traders wait a little bit longer. Just because it feels a whole lot like an acceleration is imminent, does not necessarily make it so.
Happy trading!
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.
