While I have been quite since the all time high, I’ve been perplexed by a potentially feature on this chart which I haven’t really shared yet. That is simply the fact that BTC never physically tested my blue regression arc. You can see that it has tested it with each bull market. However, with this one, it never quite made it up there. Right now the regression arc is around 90,000. Additionally, if you look at the wave structure of the recent bull market, you can see that it appears to be an incomplete five wave impulse, with the current action potentially being the fifth wave. If that is the case, I do see that a fifth wave could take BTC up toward the 90,000 level, where it would touch my regression arc, and that would likely be the actual top of the bull market.
Adding to the case, BTC is above all major moving averages on the , and it has even forced a golden cross on the chart. So, as BTC has shown this renewed strength (which I honestly didn’t expect) I am definitely leaning here. I’m cautiously optimistic that a more substantial recovery is developing.
However, before we get too , there is one particularly ominous indicator on this chart. That is the weekly reversal signal. As you can see, there hasn’t yet been a weekly reversal signal here, and while that can certainly change, the signal is currently . While I would love to tell you that the overall picture is clearly right now, that just isn’t the case. The technical picture appears to be shifting back to the side, even here on the .
My preferred method of trading this, would be to go long with relatively tight stops in place, just in case the market turns to the downside, and we get a huge fake out here. Remember, BTC has never recovered in previous bear markets, after the initial test of the 50 week moving average. So, this would be a first. With that said, the aforementioned indicators warrant a long position, with stops in place to prevent heavy losses in the event of a fake out. As long as BTC is strongly above that 54 level on the weekly , I have to side with the bulls.
I’m The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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