In this article, U.Today is going to take a look at the Bitcoin/USDT trading pair on the Binance exchange.
As you can see from the chart, the price holds below all three moving averages, and the current major level is the local low at $6500 level.
If we take a look at the MACD histogram, we will see that the indicator has been signaling a divergence from Sept. 25. We can say about the RSI indicator, which is about to get in the oversold area again.
On the four-hour chart, the RSI has jumped out from the oversold area while MACD still shows the divergence. This set-up can turn bullish fast in this case, so it is very interesting how high the current bounce is going to get.
Let’s try to adjust the current chart to Elliott waves to find some additional points of our interest.
After we reached the local high at $14,000, the downtrend started to zigzag, which means that we saw the correction on the previous impulse. What does it mean for us? It means that we have a high probability to see a new high without breaking the December 2018 low of $3,150.
Of course, for most people, a reasonable question is where the correction ends...One of the possible ways, you can find on the chart below. It is the scenario where we are in the complex ‘WXY’ correction. And this corresponds to the expectations of trading legend Peter Brandt.
If we take a closer look and zoom in to the four-hour timeframe, we will find the leading diagonal (marked as five waves) but we have broken the low of this impulse. It could mean that we are in an extended flat pattern. If that scenario is correct, we are about to see some growth.
The weekly chart of the total market cap looks bearish. But, you can see how the curve of the negative trend has been changed by the sudden $5 bln rise. That could be the point where the market sentiment is going to turn bullish.
On a daily chart, the situation looks much better because here we have already broken the negative trend and this can be interpreted as a return of some demand if we are talking about the SPOT market.
In general, the situation is quite interesting. Lots of traders would like to see another panic sale, but perhaps Bitcoin will not present give us such a gift this time.