The Bitcoin market is relatively unchanged from yesterday. A bit higher but nothing remarkable. Here is the 8-hour chart we looked at yesterday:
I continue to believe that the support will give first, for reasons discussed at length in recent columns. In a nutshell, it’s because the 1st arc pair has already been violated 3 times. I expect it is therefore highly likely that we will see a test of the 2nd arc pair.
If my working hypothesis that this is an A-B-C wave pattern is correct, then one more wave down to the area of the A low would be appropriate. Anywhere in the yellow highlight would be tidy on several levels.
Here is the daily chart:
But this is all speculative. I would not trade on such speculation. I would not short a bull market, even though I believe a spike low is likely coming. I have been burned by that trade far too many times.
As I have said in the recent past, I will wait for one of two things to happen, and then go long: A) buy after a spike low followed by a rebound, or B) buy a successful and convincing close above 3rd arc resistance. One of the two will likely happen in days (or less), not weeks.
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.
Last modified: July 13, 2020 3:14 AM UTC