Let's try to look ahead at the weekend
Normally I only post just after the weekend, but this time I figured it would be fun to switch things around a bit and have a look at BTC before the weekend madness begins. Unfortunately, there is not much exiting news to report. In a way BTC is still following the broad strokes of the legacy markets. At the moment, I expect a correction down over the weekend, to get the 12 hr Stoch to a lower level than where it currently is.
We have tried to move above the level of the daily 11 EMA (so 22 on the 12hr), but we got recalled back into reality quite quickly. To be honest, I would be surprised if we did not spend some time correcting now. As I said last week, we are range bound and we are still at the top of the range. Let's have a look at the 3D chart for a change. (Not 3 Dimensions, but 3 Days... 3D would be cool...)
Two rectangles are the most likely short term and longer term targets IMHO, but that of course only holds true if we are in fact range bound. I would not be surprised to see a H&S pattern forming over the next weeks. However, an alternate count is that this is wave 4 of 5 up, meaning we could also see a spike up to and over the top of the range. That would be my bullish alternative. In neither case I think we will see fundamental moves by BTC the coming weeks.Even though a 1000 USD move either way is large, for crypto it is simply Tuesday. One thing I like is the way the alts are holding up. That is the only thing that gives me pause regarding my relatively bearish view. So, have a nice weekend, be safe and trade responsibly!
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