BTCUSD - $6500 inbound? ABC Correction may have just begun...
So as we've all seen this past few weeks, the market has been extremely overextended. Things from this point get interesting.
The following indicators/signals have triggered my interest on the 2 day chart:
A target at 7127 is very possible (which would be a retracement to the Golden ratio, or 0.618 of the high of this recent run) but not before testing 8400 one last time.
A bullish scenario would see this 8400 line of resistance being broken through, which could still happen, but I guess we will have to wait and see ;)
The following indicators/signals have triggered my interest on the 2 day chart:
- RSI is officially bearishly diverging (Higher High of price, Lower High of RSI), and also broke a month old support. This means momentum is shifting in favor of the bears.
- Elliot Wave Theory Dictates that after a five wave structure upwards, a three wave corrective ABC pattern will continue against the trend. With bearish divergence on the 2D chart, it is quite possible we could see an ABC wave forming
- Price action is very bearish with large amount of red engulfing candles.
A target at 7127 is very possible (which would be a retracement to the Golden ratio, or 0.618 of the high of this recent run) but not before testing 8400 one last time.
A bullish scenario would see this 8400 line of resistance being broken through, which could still happen, but I guess we will have to wait and see ;)