Good morning traders. Supply was too dominant so we did end up seeing that dip I suggested yesterday had a slight chance of happening. Price ultimately bounced off $8421, immediately above the D1 R4 pivot. This has printed bullish divergence on the 1H RSI as shown by the red arrows. Price should be good to go to the top of the local TR around $8930 before pulling back $100-$150 and then finally heading through the TR's resistance.
At this time, nothing has changed from what I wrote yesterday, except that the flag's target is a bit lower at $9750 now and the ascending blue channel target has risen just a bit. As always, the target will be dependent on when price breaks through the channel's resistance, but the longer it takes price to do so, the higher that target necessarily becomes as the channel advances. I did caution traders yesterday that there is no guarantee that price will reach that blue ascending channel target, rather price may just pop out to $9,750-$10,000 and print a bull trap before reversing. But if it does continue higher, then that target is the one I will be watching next. If price does push beyond $10,000, it will likely require a recount of the waves leading up to it from May 16th -- a shifting of the waves to the right -- which would mean we could be starting the 5th subwave of the 3rd subwave of wave 5, rather than the 5th subwave of wave 5.
In the near term, we are seeing price consolidating just below the TR support, along the 21 EMA on the 1H chart. This consolidation is printing a small flag with a target at the top of the local TR, as mentioned above. The 4H Stoch RSI is crossing bullishly in oversold after bouncing off the bottom and RSI is bullish at 58.7. I continue to believe that if we get the blow off top, then price will head higher than $10,000 in order to produce the FOMO required for such a move. Again, the expectation from cryptotwitter's armchair "analysts" is a reversal at that level, so we should expect that many people will be attempting to short, what they believe to be, the top. Price continuing higher would create real FOMO and trap those shorts thereby resulting in a blow off top. As discussed yesterday, we could also just see a general distribution TR develop, but for now I'm still looking at the blow off top as the more likely event.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
At this time, nothing has changed from what I wrote yesterday, except that the flag's target is a bit lower at $9750 now and the ascending blue channel target has risen just a bit. As always, the target will be dependent on when price breaks through the channel's resistance, but the longer it takes price to do so, the higher that target necessarily becomes as the channel advances. I did caution traders yesterday that there is no guarantee that price will reach that blue ascending channel target, rather price may just pop out to $9,750-$10,000 and print a bull trap before reversing. But if it does continue higher, then that target is the one I will be watching next. If price does push beyond $10,000, it will likely require a recount of the waves leading up to it from May 16th -- a shifting of the waves to the right -- which would mean we could be starting the 5th subwave of the 3rd subwave of wave 5, rather than the 5th subwave of wave 5.
In the near term, we are seeing price consolidating just below the TR support, along the 21 EMA on the 1H chart. This consolidation is printing a small flag with a target at the top of the local TR, as mentioned above. The 4H Stoch RSI is crossing bullishly in oversold after bouncing off the bottom and RSI is bullish at 58.7. I continue to believe that if we get the blow off top, then price will head higher than $10,000 in order to produce the FOMO required for such a move. Again, the expectation from cryptotwitter's armchair "analysts" is a reversal at that level, so we should expect that many people will be attempting to short, what they believe to be, the top. Price continuing higher would create real FOMO and trap those shorts thereby resulting in a blow off top. As discussed yesterday, we could also just see a general distribution TR develop, but for now I'm still looking at the blow off top as the more likely event.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.