Bottom In For Bitcoin?
Bitcoin broke over resistance, so I favor a bottom being in. However, we still need to see it bounce between support and resistance until it fills in five waves in order to set up the next big break out over $10,500.
Our darling of the last wave up, Ether is now struggling with resistance. Further, as of writing it went too deep to rely on the current structure as an impulse. So, I'm discussing the potential of a diagonal below.
The next key level in this rally, the 3rd of (3) should hit near $9388. Support for this move to be considered impulsive is at $8900. All systems go as of writing. but that doesn't mean trouble doesn't show down the road. It is still early in this attempted bottom.
As noted above, we breached the level for me to call this an impulse. Further, Ethereum is still struggling to break over $238 If we can rally over today's high at $234.20 we should see a third wave in C of (3). But the lack of reliability in this count can't be underestimated, and if we break below $220 I'll be looking back toward $187-189 for one more low.
There is little to add to GBTC yet. We are not past $11.05. But if I squint pass the illiquid candles, I can make out an ugly impulse. I'll consider it on its way to $12 as long as above $10.40
In the wake of the weak ETHUSD chart this chart alwo weekend, and I now question the bullish setup for (5)/red 3. So, I'm moved it to red. We may see it play out, but I'm starting to favor an ugly ending diagonal into (4) support.
I'm still waiting for confirmation of trend change before being aggressive with my leverage. However, if you are trading in cash, this is a great place to scale in with ammo saved for lower.
Will add ETHBTC if we head lower into support.
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