Bitcoin is going through correction for the last two weeks, Bitcoin had found rejection at 10500$, and it had been dropping since then. Bitcoin is currently trading at 9350$.
Let's look at technicals to find out what is next for bitcoin?
Elliot Wave Analysis
- Bitcoin had completed the first major wave at 10500$, and now going through the second wave.
- The Second wave can be divided into 3(ABC) or 5 sub-waves(ABCDE).
- Bitcoin is currently into C wave of a second major corrective wave.
- According to Elliot wave structure - Bitcoin should bounce from 9200$ support and retest 9700$.
If Bitcoin manages to break above 9800$ area then the correction will be over and bitcoin should continue the rally to 12000$ and higher.
But If Bitcoin finds rejection during 9800$ retest, then we might see an extended correction down to 8500-8800$ area before a significant bounce.
Moving Average
50, and 200MA are two major support levels to hold for bitcoin.
50MA is sitting at 9200$, and 200MA is sitting at 8800$.
Major trendline support for bitcoin is at 8500$, which is also a CME GAP not filled yet. 8500$ is the maximum target of this ongoing correction which could be reached.
How to trade
Long Bitcoin at 9200$, target 9600-9700$ with a stop at 9000$. If Bitcoin finds strong rejection at 9700$ then, open a short position from 9500-9700$ and target 8700-8800$ with a stop at 9900$.
Let's look at technicals to find out what is next for bitcoin?
Elliot Wave Analysis
- Bitcoin had completed the first major wave at 10500$, and now going through the second wave.
- The Second wave can be divided into 3(ABC) or 5 sub-waves(ABCDE).
- Bitcoin is currently into C wave of a second major corrective wave.
- According to Elliot wave structure - Bitcoin should bounce from 9200$ support and retest 9700$.
If Bitcoin manages to break above 9800$ area then the correction will be over and bitcoin should continue the rally to 12000$ and higher.
But If Bitcoin finds rejection during 9800$ retest, then we might see an extended correction down to 8500-8800$ area before a significant bounce.
Moving Average
50, and 200MA are two major support levels to hold for bitcoin.
50MA is sitting at 9200$, and 200MA is sitting at 8800$.
Major trendline support for bitcoin is at 8500$, which is also a CME GAP not filled yet. 8500$ is the maximum target of this ongoing correction which could be reached.
How to trade
Long Bitcoin at 9200$, target 9600-9700$ with a stop at 9000$. If Bitcoin finds strong rejection at 9700$ then, open a short position from 9500-9700$ and target 8700-8800$ with a stop at 9900$.