Sorry for a bit messy chart but all these lines we use to explain our view. Last time we’ve talked about possible pullback that would be perfect to consider buying coins for longer term perspective. As on Friday all markets have got injection of positivity from the Fed, the price shape here, on BTC has changed as well. It doesn’t deny retracement totally, and price still could reach 45K area in a shape of AB-CD (as it is shown on the chart), but as risky assets is becoming stronger, we need to consider additional scenario that might be formed here.
As we have decided to not consider any short positions – recent action has not made any negative impact for us. Recall that we have uncompleted 50.8K AB=CD target on 4H chart and BTC has not touched 51K major Fib resistance as well. Now, on 4H chart price is taking shape of triangle, which makes us think that BTC could try to challenge mentioned levels. Thus, we think that it makes sense to pay attention to 47.5K area as well – here we have “222” Buy potential reversal point, Fib support and lower border of 4H chart triangle. If even we’re wrong and BTC will keep dropping further – this is relatively strong area for intraday chart and some minor bounce should happen at the first touch. This bounce has to be used for stop moving to breakeven. This is our idea.
Thus, next is up to you – you could try it, or, if you have doubts – wait for larger AB=CD downside pattern. Once market completes it, we take a look what to do next.
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