Bitcoin: Good odds for a bounce towards 28k
Bitcoin – Good odds for a bounce towards 28k
So as the title mentions, Bitcoin at this stage has good odds for a bounce towards 28k next. Note, the first analysis posted about Bitcoin on Dalietos.com the 3rd of February forecasting the pull back from approximately 23.8k in advance.
Why?
As it can be seen from Bitcoin daily chart on log scale, price is retesting the broken descending channel which most of the times is a good opportunity to enter long for the next extension towards the 28k.
Additionally, based on Elliott Waves, I am expecting on a larger degree an irregular flat for X wave before we continue to the downside. So at this point I am waiting one more extension to complete wave V. Note, if this analysis gets proved correct, then the wave V is the last extension for the irregular flat to complete X correction.
Risk to reward ratio
You will need a good signal system to enter Bitcoin and have a good risk to reward ratio with a predefined stop loss. Note, due to the fact wave III extended to the 2.41% fib level of waves I and II, wave V might fail to extend to 28k and just roll with double tops around the top of wave III.
Stop Loss
If Bitcoin price penetrates back below the upper trendline of the descending channel (note it might just whipsaw below) then the initial break above the descending channel on the 20th January should be flagged as false break. If the case then a new analysis will posted.
Trade safe.
Update 15/02/2023
The following chart is an update on this study post 4 days the initial post. Soon, a new post to analyze and forecast price action next.
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