Updated: Dec 19, 2019
Its a flat! Or a Trap? Either way the pattern that BTC is seemingly taking place on the D1 chart is screaming flat to me. The running type to be exact. If this is to become true it will most definitely be the biggest bull trap since 6k 2018. Stemming off the post from the beginning of this week we have seemingly broke down from the lows posted at 6.8k. Which was not to our surprise as intraday price action was bearish and formed a sell pattern. The break back below D1 open and sweep of the low was a tell tale sign the original WXY idea was no longer valid and we were to trade the more bearish idea being an ABC.
As time progresses and price dips lower and lower the chances of a a valid X wave becomes ever more increasingly possible. HOWEVER it is key we don't jump any guns we must watch price reverse one time frame at a time. We can be completely wrong and this can be a capitulation event ( I don't think this). We will look towards to m13 chart to give us clarity again on intraday action. We want to watch for a major low point to be cleared in less time and complexity. If that can happen and we sub sequentially hold the GB box (.68 retrace) of that move up chances are we will start turning north up to range highs at a minimum. For now we wont jump in any longs unless the running flat 100% comes to fruition. A break over 6.9k which i have labeled in purple would be our signal that we have completed yellow B wave. If we continue to fall we can attempt some long bids in the DCB box ($6213-$5998) of measured move A in yellow depicted in the chart here. The stop can be seen 2-3% away from entry. If we do manage to find a low before the DCB box we will look for the #valleyrangetheory which was explained briefly above. We want it to play out one time frame at a time and also have the major 3-4 trend line break as well. That will be our signal that a reversal has been made and we can see a test and IMO a break of monthly range high at $7882. Make sure to practice good risk management by never risking more than 3% of your entire portfolio. Make sure to hit a like if you took something from this post!