…or as we say in Catalan Language: “no diguis blat fins que no sigui tot al sac i ben lligat” which means that despite the extraordinary rise of BITCOIN today, which as I wrote yesterday as a first option to happen in this post , we still cannot say the reversal is confirmed yet.
This is the chart I presented as an option 1 yesterday:
And this is how it looks today:
That long daily candle has crossed the 200 DMA and almost has reached the 1.618 FIBO level of the fist wave for the end of the 2nd wave, which it is pretty accurate to what I was telling…
Two conditions has been accomplished:
– A Higher High
– A cross through the 200 DMA line
But in order to confirm the reversal market there is a third condition pending. The crossing of the 50 Day Moving Average through the 200 DMA.
Additionally, do you remember what happened on 2015?
BITCOIN reached the three conditions there but still had to experiment another major drop before resuming the uptrend:
…and, honestly, if we compare both situations, the breakage of the 200 DMA on 2015 was not produced by a 4h long candle as we have today but for a sustained and “natural” growth…
That behavior is typical for the so called “Accumulation” phase on which we are right now… It would be very weird but not impossible if we would see BITCOIN growing as a beast without passing through a total accumulation phase…. however, I keep my EW-Count as still valid.
Enjoy the moment!!!!
*Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.