BTCUSD - BitStamp, Intermediate Term Bullish by DanV on TradingView.com
29 September 2014
We have retraced 88.6% of the swing from April low at 336 to high at 682. We have other fib ration and 360 zone which as many of you will know in Gann Analysis is very important number as it represents 360 degree in a circle.
Anyway, I am conservatively looking for potential contracting triangle which is more clearer in BitFinex, which if correct then a zigzag move to 550-560 zone could be expected.
Alternatively, if since April low we have a "Flat Correction" (also see a diagram below), then we have what could unfold is Wave C with 5 internal waves, that could retest 680 high or attain higher level.
For details explanation see the recording of live presentation broadcasted yesterday
In terms of potential low we have following things to note:
1. Retraced 88.6% of the April to June swing.
2. Potential RSI divergence which could fail. But for now it is suggesting bullish outcome.
3. From July 2014 high at 658 we have what seems like an ending diagonal in the form of falling wedge. This normally suggest an end of the cycle.
4. Falling volume with the current low completed with one prior labelled 3.
This is a volatile instrument so the price action might nullify the above but as long as it holds then possible outcome described above has good chance of unfolding.
This is an intermediate term bullish and do not fell will be a new bullish cycle that will result in price continuing to retest the all time high and beyond.