So, according to WSJ, on April 13th Pantera Capital Management, a hedge fund with a focus on cryptocurrencies, called $6500 a bottom and promised $20000 for BTC by the end of year.
Also, there are rumors that some Wall Street players, Soros Management Fund, Rockefeller’s venture capital firm will all suddenly start buying into Bitcoin. Soon.
Whether true or not, all this caused a sudden $1200 spike in Bitcoin's price on double the usual daily volume. Many bears were rekt as result. But was it a trap just for the bears or for both bears and bulls? Lets see.
Multiple wave counts are possible:
1) Bearish scenario:
We are in (WXYXZ), in (Z) on the way down to 6000, (X) = ABC
both blue ABC and red ABC converge at the same level around 8460:
blue ABC: C = 2.618 of A
red ABC: C = 1.618 of A
red ABC is possible if (Y) is the 6400 bottom, wave A is the first wave up of an upwards correction, wave B is a triangle abcde, where leg e is the end of wave B.
blue ABC is possible if (C) is the 6500 bottom, in this scenario:
(Y) moves to => (C),
wave (circle) => (Y),
wave (circle) moves to => (C) and becomes a truncated wave (6500 is higher than 6400).
2) Bullish scenario:
(C) is the 6500 bottom, in this scenario:
(Y) moves to => (C),
wave (circle) => (Y),
wave (circle) moves to => (C) and becomes a truncated wave (6500 is higher than 6400).
And we have an up trend (i,ii,iii,iv,v) instead of an ABC and (X).
In this case expect wave (iv) correction to 38.2% 7800 (max 7600), bounce up, retest and break above the blue down channel of the down-facing pitchfork.
If we fail to breach it the blue channel will become the new down channel. The correction is long due because of RSI divergence.
Correction below 50% level 7600 (Y > 1.618 of W) invalidates the up trend and confirms the continuation of a down trend for the near future. This level must hold for the up trend to succeed.
After up trend is confirmed the price should move along the lines of the upside-facing smaller pitchfork. We can go as high as 8950 (161.8%).
Please, don't trade based on my analysis only. Do your own research. This is not a financial advice, I'm not responsible for possible losses.
Good Luck!
Also, there are rumors that some Wall Street players, Soros Management Fund, Rockefeller’s venture capital firm will all suddenly start buying into Bitcoin. Soon.
Whether true or not, all this caused a sudden $1200 spike in Bitcoin's price on double the usual daily volume. Many bears were rekt as result. But was it a trap just for the bears or for both bears and bulls? Lets see.
Multiple wave counts are possible:
1) Bearish scenario:
We are in (WXYXZ), in (Z) on the way down to 6000, (X) = ABC
both blue ABC and red ABC converge at the same level around 8460:
blue ABC: C = 2.618 of A
red ABC: C = 1.618 of A
red ABC is possible if (Y) is the 6400 bottom, wave A is the first wave up of an upwards correction, wave B is a triangle abcde, where leg e is the end of wave B.
blue ABC is possible if (C) is the 6500 bottom, in this scenario:
(Y) moves to => (C),
wave (circle) => (Y),
wave (circle) moves to => (C) and becomes a truncated wave (6500 is higher than 6400).
2) Bullish scenario:
(C) is the 6500 bottom, in this scenario:
(Y) moves to => (C),
wave (circle) => (Y),
wave (circle) moves to => (C) and becomes a truncated wave (6500 is higher than 6400).
And we have an up trend (i,ii,iii,iv,v) instead of an ABC and (X).
In this case expect wave (iv) correction to 38.2% 7800 (max 7600), bounce up, retest and break above the blue down channel of the down-facing pitchfork.
If we fail to breach it the blue channel will become the new down channel. The correction is long due because of RSI divergence.
Correction below 50% level 7600 (Y > 1.618 of W) invalidates the up trend and confirms the continuation of a down trend for the near future. This level must hold for the up trend to succeed.
After up trend is confirmed the price should move along the lines of the upside-facing smaller pitchfork. We can go as high as 8950 (161.8%).
Please, don't trade based on my analysis only. Do your own research. This is not a financial advice, I'm not responsible for possible losses.
Good Luck!