Bitcoin Chart 31

Completing a Bearish "Running Flat" Into Resistance?

BTCUSD – Completing a Bearish “Running Flat” into resistance by DanV on TradingView.com


18 January 2020

Updates and comments

From 26th June 2019 the BTC appear to have declined in a leading diagonal Wave (a) with low on 23rd October 2019.

Since then it could be forming a Running Flat (which are normally 5,3,5 or 3-3-5 structure) where wave “c” fails to retest the high of wave “a”.

This is a bearish structure as it suggests the the price lacks the momentum to make normal zigzag correction.

In addition, the wave “c” in this case appears to be a rising wedge with minor wave structure (3-3-3-3-3) having retraced just above 61.8% of wave “b” and has potential resistance from declining channel line and horizontal structure in proximity.

Once this is complete, it would decline in 5 waves. If Wave (a) = Wave (c) by percentage decline, then the downside target could be around 4,300.

Invalidation of the above would be significant price rise above 9,250

Caution: This is my interpretation of price action using TA approach that I consider helps me the most but could be completely wrong. Therefore as always, do your own analysis for your trade requirement and ignore my views.

For those who appreciates my analysis, select to follow me and the chart for notification of future updates. Indicate you like my analysis by thumbs up, comments and sharing it with others. If you have an alternative idea then please be constructive and share for all to learn from.

Thank you for taking the time to read my analysis.

DanV 

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