Bitcoin in the short term, Expecting a dead cat bounce
Here is the Bitcoin's price and movement on the lower time frame. If you've joined me since few days ago, I've anticipated the blue region (or the golden pocket zone) as the short term target and possible a strong area of support level. It's all came true with a huge bounce right after the price touched the blue region and now the volume is increasing over and over again to prove that this current pattern as potential dead cat bounce.
Based on the EW count, you can see that the price has already formed a 5 waves structure toward the down side and usually after this kind of reaction, you can expect more upside moves. On the lower time frame which I use the 1 hour time frame, price is showing us a sign of bullish divergence as potential reversal pattern. Another significant movement is that when we see after this bullish divergence occurred, The RSI has a slight bounce and entered the neutral area again after a pretty long consolidation on the bearish zone.
In my opinion, there is a potential of 1 more small wave to the downside to retest and confirm again the blue region before we see a real action of dead cat bounce. But, I do believe that starting a laddering toward your long position at this rate will produces a worth Risk to Reward ratio. I'll give it a go and targeting the yellow region which is having an alignment with the golden pocket for short term. $18700 zone.
Based on the EW count, you can see that the price has already formed a 5 waves structure toward the down side and usually after this kind of reaction, you can expect more upside moves. On the lower time frame which I use the 1 hour time frame, price is showing us a sign of bullish divergence as potential reversal pattern. Another significant movement is that when we see after this bullish divergence occurred, The RSI has a slight bounce and entered the neutral area again after a pretty long consolidation on the bearish zone.
In my opinion, there is a potential of 1 more small wave to the downside to retest and confirm again the blue region before we see a real action of dead cat bounce. But, I do believe that starting a laddering toward your long position at this rate will produces a worth Risk to Reward ratio. I'll give it a go and targeting the yellow region which is having an alignment with the golden pocket for short term. $18700 zone.
