$12600 support has held and our new cycle has begun! Yay!
Take a look at the chart. With the extended consolidation, it became necessary for me to update my targets. This extended consolidation allows me to also extend my target(s). Notice I have two now.
So, what is going on here is that it seems we are in a wedge. Elliott Wave dictates an ABCDE touch and then break out. However, some of the time (I do not know what the statistic ratio is? Maybe a comment warrior could help me out here), we will not experience the last wave. This is why I have two orange arrows pointing out of the triangle. We have two possibilities:
a) Hit the top of the triangle and break straight out or,
b) After hitting the top, we go back down, bounce off of the bottom and then break out.
Because of the downtrending resistance noted in the RSI chart, I expect the latter possibility to become more probable. However, as often is the case, Bitcoin could surprise me again and just shoot right through.
Revised targets are:
#1 - Just short of our last ATH. Take some off here.
#2 - $28,000 or the beginning of March, whichever comes first.
Why the beginning of March you asked? Check out the cycles again. Notice we are right on queue and headed up again. This means, we should have about 45 days of uptrend movement before we start heading down again for the last 15 days of the cycle and right into mid-March. Always keep this cycle in mind. BTC is pretty consistent with it.
Happy trading friends!