As expected in the last column, Bitcoin sold off after touching the 5th arc on the 2-hour chart, falling from $1050 top $1005. However, the fall was less than expected, and then the asset reversed and pushed its way through the arc pair. For those following along at home, the buy signal was given at $1028 on the 2 hour chart.
On the 4 hour chart, this is what recent price action has looked like when seen through the prism of an Andrew’s pitchfork:
Here is a Gann setup on the same 4 hour chart:
It is worth noting that the top of the 5th square is almost at the same price as the January 2017 swing high. When/if price gets there, there will be a moment of decision. While I am on record as suggesting that we are probably witnessing a B wave of an Elliott Wave A-B-C correction to the Jan high, I am well aware that the long term trend of Bitcoin is UP. So, at that decision point, I/we will learn if I was mistaken in my thinking on this point, or not. Time will tell…
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.
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Last modified: March 4, 2021 4:54 PM