In our last column we speculated that bitcoin price was going to $930. It didn’t quite get there. It hit $920 and corrected there. As I have held onto the belief that we are still in a corrective phase to the massive rally to 1150, I was thinking that 920 might be the end of the current rally. But the asset is showing signs that another move higher is on the menu.
This is the daily chart. You can see how the market reacted to the 2nd arc. There was sharp selloff there, but the market on the shorter-term charts looks like it is getting ready to move higher. (I’ll show you that a bit later.) For now, I notice that an important S/R line from an Andrews Pitchfork exactly intersects the 3rd arc at exactly $1,000.
2nd arcs occasionally stop market moves, though usually only in minor corrective moves. The 3rd arc is stronger in many cases, and the fact that a .5 Andrews line is there as well, at exactly 1000, makes me think there will likely be a rally to that point in the not-distant future.
The 8-hour chart above shows a similar picture as the daily, with just a bit more detail.
Here is a 2-hour chart worth looking at. I don’t normally bother with 2-hour charts in a column which is only published every couple days, but in this case there is a message which is pertinent now.
According to this setup, the 5th arc is in the $1,000 range, and currently pricetime is working its way through the 3rd arc pair. The 1st of the pair has already been conquered, and I have a strong feeling that the 2nd will fall soon. We won’t technically have a buy signal until we have a close above $900, but I am cautiously optimistic that a buy signal will arrive shortly.
Next target is $1,000.
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.
