Bitcoin to Make Convincing Rally Before Final Correction
I think it is safe to say (for now) that BTCUSD has found a bottom. From it's all time high around $19.9k, we have seen a 70% correction. I believe we have finished our first intermediate corrective wave down. I believe our wave (A) was structured as a motive wave. It is subdivided by a 5-3-5-3-5 wave pattern, which we saw. Our last push down, that put us at new local lows, was the typically overthrown 5th wave. Our price target in the long term will be the 78.6% and 61.8% retracements, which equate to just shy of $17,000 and $15,000 respectively. A common target for falling is the highest point of the (wave 2), which confirms the 78.6%/$17k target. From there we can expect a push downwward of roughly the same degree, A=C, on a percent scale. 70% of the two targets above puts us around $5,000 and $4,350.
I would expect either an or inverse Adam and Eve pattern to lead into our reversal here (small time frames). Key resistances to watch on our way up are going to be all psychological resistances, $9k, $10k, $12k, etc. Also watch dynamic resistances, such as the upper of our (diagonal triangle) and the red lines drawn from historic supports/resistances.
Some dates to keep in mind are the CBOE and settlement/expiration dates. CBOE = February 16th and = February 28th. I expect this rally to be rather strong so those dates as targets may not be unreasonable.
As for other crpytocurrencies, thus far they have rallied quite hard. If BTC begins to pickup steam, I think they may start to fall behind, or even suffer slightly. This is just a theory, so we will have to wait and see. I will try and post some in-depth analysis on Ethereum and other popular tokens here in the coming days.
EDIT: I don't know why the chart is off-center sometimes..
*THIS IS NOT TRADING/FINANCIAL ADVICE, SIMPLY MY THOUGHTS AND OPINIONS*
If this pans out, we're going to want to watch for expanding volume as the right shoulder approaches the neckline/breaks out.
These are the only other two daily buys since May 2015 when BTC was $231
This aligns with where I think price is headed, first buy signal in 2013 pre-bear market:
I see our climb to $17k/$15k being a slow and arduous one, we'll have resistances galore all the way up by then.