Bitcoin Correction Was Sharp but (Too?) Short-Lived

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Bitcoin fell sharply a few days ago, just hours after we warned of this likelihood in the last column.  The fall was dramatic but stopped much sooner than I expected.  I have spent the past few days looking for either a sign the fall was about to resume, or that the bull market would resume instead.

First, I note that the 2-hour chart shows a bear setup as follows:

After a long rally from the swing low, the market fell sharply upon reaching THE END OF THE 4TH SQUARE IN TIME. It found support precisely at the 2×1 Gann angle and the bottom of the 2nd square.

That support would be found there would not be a great surprise, but still, it seems “not enough” of a correction.  I have been waiting for the next shoe to drop, but to date that hasn’t happened. Instead, the same 2-hour chart has a bull setup as shown below:

With a successful close above the 2nd arc it seems that the rally is likely to resume for a bit longer at least. The next resistance on this short term setup is ~ $1030.

However, there is the possibility of a trap lurking.  Look at this 4 hour chart:

The pink line is the “1 line” from a pitchfork.  It is very close to the (red) 1×2 Gann angle, and they are both very close to the current position of pricetime.  Further, the vertical red dotted line is warning that this is a moment in time something might be expected to happen (an energetic point in time, so to speak). This is not a guarantee of anything of course.  Price might successfully get through the resistance.  But it could also be a trap.  Caveat emptor…

Happy trading!

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.

Featured image from Shutterstock.

1 CRYPTO

Crypto News & ICO Reviews

1 News - 247 News - 247 Bitcoin - 1 Search

BTC - BCH - ETH - LITE - XRP

Buy Sell Trade Crypto Here

 

Ticker

1 BTC = $32829.43 USD  (via Coinbase)
1 ETH = $1918.62 USD  (via Coinbase)
1 LTC = $129.39 USD  (via Coinbase)
Quotes delayed up to 2 minutes.

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