Good morning, traders. Bitcoin has finally been making some movement that we can look at, and it's nothing that we haven't been talking about as a possibility for a while now. Specifically, overnight we saw Bitcoin retrace 50% from its recent run up. Now things are becoming more interesting. The potential IHS in development that I have been referring to recently is becoming more likely.
The 1H chart is showing strong oversold conditions that mirror the previous lows below $6000. As such, it doesn't appear to be likely to fall much further without first targeting the 50% retracement of this recent downward movement at around $6572. This would put price right under the pivot. In order to do so, we need to see price bounce off its current support at S1.
In regard to the daily pivot, just because we have breached it does not mean we have to continue lower. I discussed this possibility in yesterday's live streams, especially if this is Wave 2 in the making. What we need to see is price movement upward, whether it's from this current position or a bit lower as price tests the previous 2 month long resistance line as support. If this has been Wave 1 and we are currently completing Wave 2, then we should expect price to reach R1 on the 3D for Wave 3, which is the 1.618 extension at $7510, and potentially R2 around the 2.618 extension at $8594, R3 around the 3.618 extension of $9678, or R4 around the 4.236 extension at $10,348 for Wave 5 depending on the amount of FOMO.
Be sure to check out the 6H and 1D charts linked below.