This is a view from the lower time frame on bitcoin. After the price touched the $11720 range, we see a strong and hard rejection since the price tested this region of resistance. However, I think that this action is a normal action that show us about the healthy market structure. A war between the bulls and the bears, a lot of traps, and a high volatility has shown us that this market is going to be very exciting.
If you see my previous post about the EW count on the higher degree, you can see that at current market the price is forming the potential 3rd wave on minuette level. It's very hard to argue that it's not the wave 3 because of the size of the green candle. At a super bullish market cycle, there will be a lot of huge green candle occur to mark it as the wave 3 which usually is the longest wave comparing with 1st and 5th wave.
The other factor that you can see is at the RSI on this 1 hour time frame. We see a lower high structure which is negatively correlated with the price which forms a higher high structure. Similar action is occurring on another oscillator indicator which is the MACD. There is a lower high structure as well on both histogram and the MA line.
However, this is a normal type of correction as the price is performing a weaker bullish momentum. But, this won't happen for a long time because there are still 2 strong supports occurring on this structure. The zone of .382 and the golden pocket zone. We might see at those 2 levels of potential future bounce. For now, being idle is very suggested in the market
If you see my previous post about the EW count on the higher degree, you can see that at current market the price is forming the potential 3rd wave on minuette level. It's very hard to argue that it's not the wave 3 because of the size of the green candle. At a super bullish market cycle, there will be a lot of huge green candle occur to mark it as the wave 3 which usually is the longest wave comparing with 1st and 5th wave.
The other factor that you can see is at the RSI on this 1 hour time frame. We see a lower high structure which is negatively correlated with the price which forms a higher high structure. Similar action is occurring on another oscillator indicator which is the MACD. There is a lower high structure as well on both histogram and the MA line.
However, this is a normal type of correction as the price is performing a weaker bullish momentum. But, this won't happen for a long time because there are still 2 strong supports occurring on this structure. The zone of .382 and the golden pocket zone. We might see at those 2 levels of potential future bounce. For now, being idle is very suggested in the market
