EW Analysis: Bitcoin Can Be Approaching Important Resistance!
June 18 2019Hello Crypto lovers!
Today we will talk about Bitcoin BITSTAMP:BTCUSD!!
Bitcoin is in a strong uptrend since the beginning of 2019, but current intraday rise seems to be out of a triangle. What do you know about triangles?! Yes, triangles are corrective and continuation patterns, but they usually occur in wave "iv", so after a break out into a wave "v", we should be aware of a potential reversal since we know that in EW theory after every five waves, a three-wave pullback follows! So, do you see what's happening?!
The next important chart is definitely Bitcoin Futures . History is telling us that these GAPs which occur over the weekend, they usually get filled. If we take a look on BTC Futures chart, we can see two unfilled GAPs, so don't be surprised if we see a bigger decline soon, ideally back to projected support around 7200 - 6200 area!
Another evidence of a potential decline in the Crypto market can be Bitcoin Dominance chart! What we currently see is a corrective recovery in wave B within an expanded flat pattern, so seems like even BTC dominance might be approaching resistance soon.
That being said, not only BTC , many other ALTs are looking for a deeper correction, so if we respect those evidences and correlations with ALTs, then we should be really aware of a potential drop , ideally around 9500 - 10000 resistance area .
Be humble and trade smart.
BTCUSD, BTCUSD Futures, BTCUSD Dominance charts, 4h
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