Some of you who read my ideas for a long time knows that I don’t like classical technical analysis, different chart patterns, support and resistance and so on, but today I found that TA confirms my scenario using Elliott waves analysis.
Let’s take a look at the 4h timeframe BTCUSDT chart of the KuCoin exchange. The price formed the inverse head & shoulders pattern, which is well known bullish pattern. Now the price is trying to break the neckline level. If it is able to do it, the price target is approximately $25600, which is above our two main resistance levels. These level should be broken to the upside to realize out scenario. In this case the next strong resistance will be at the 4h supply zone at $28-29k, which is our target for the wave 4 from the previous analysis. You can be scared by the potential bearish divergence with the MACD, because the last time I bought Bitcoin at $18500 after the same, but bullish divergence. But as you can see those divergence was with the strong bullish bias, hence the signal played out. But now the potential bearish divergence is weak. I so multiple times such divergences, when have been trying to short BTC from $43 to $45k, but the upward movement was stopped only with the strong divergence. Thus I wait correction may be, but not dump. Let’s see.