Bitcoin Correction Was Sharp but (Too?) Short-Lived
Bitcoin fell sharply a few days ago, just hours after we warned of this likelihood in the last column. The fall was dramatic but stopped much sooner than I expected. I have spent the past few days looking for either a sign the fall was about to resume, or that the bull market would resume instead.
First, I note that the 2-hour chart shows a bear setup as follows:
After a long rally from the swing low, the market fell sharply upon reaching THE END OF THE 4TH SQUARE IN TIME. It found support precisely at the 2×1 Gann angle and the bottom of the 2nd square.
That support would be found there would not be a great surprise, but still, it seems “not enough” of a correction. I have been waiting for the next shoe to drop, but to date that hasn’t happened. Instead, the same 2-hour chart has a bull setup as shown below:
With a successful close above the 2nd arc it seems that the rally is likely to resume for a bit longer at least. The next resistance on this short term setup is ~ $1030.
However, there is the possibility of a trap lurking. Look at this 4 hour chart:
The pink line is the “1 line” from a pitchfork. It is very close to the (red) 1×2 Gann angle, and they are both very close to the current position of pricetime. Further, the vertical red dotted line is warning that this is a moment in time something might be expected to happen (an energetic point in time, so to speak). This is not a guarantee of anything of course. Price might successfully get through the resistance. But it could also be a trap. Caveat emptor…
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Featured image from Shutterstock.
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