Interesting trading zone has approached for
BTCUSD
!.
Wave counting the subwaves within the current major trend downwards, we are sitting at a point of reversal.
The 7880 resistance is a strong one to watch for as it has served as a major turning point using 1D chart since the beginning of the year.
If we break through this level, next support may be found at 7650 area, following a small 1-2-3-4-5 subwave downtrend (violet) that is within a larger 1-2-3-4-5 wave downtrend (yellow).
Alternatively, we just peaked out a simple ABC correction wave (green), which would mean we may be headed for another impulse 1-2-3-4-5 wave uptrend to test the upper line of the wedge.
Should this support break at 7880, the green wave would still remain valid so long as 7650 is able to rebound.
Either case, I expect to see a reversal using this 7880 support and make it back 38.2% retracement to ~8000 level and anticipate another dip there to test the 7880 zone again.
If bulls can hold support at this line again, we are likely headed towards further uptrend.
Overall, my sentiment is still bearish. However, given the wave counts and increasing bullish momentum, I am cautiously bullish for a short term.
Trade with care here.
BTCUSD
!. Wave counting the subwaves within the current major trend downwards, we are sitting at a point of reversal.
The 7880 resistance is a strong one to watch for as it has served as a major turning point using 1D chart since the beginning of the year.
If we break through this level, next support may be found at 7650 area, following a small 1-2-3-4-5 subwave downtrend (violet) that is within a larger 1-2-3-4-5 wave downtrend (yellow).
Alternatively, we just peaked out a simple ABC correction wave (green), which would mean we may be headed for another impulse 1-2-3-4-5 wave uptrend to test the upper line of the wedge.
Should this support break at 7880, the green wave would still remain valid so long as 7650 is able to rebound.
Either case, I expect to see a reversal using this 7880 support and make it back 38.2% retracement to ~8000 level and anticipate another dip there to test the 7880 zone again.
If bulls can hold support at this line again, we are likely headed towards further uptrend.
Overall, my sentiment is still bearish. However, given the wave counts and increasing bullish momentum, I am cautiously bullish for a short term.
Trade with care here.