BTCUSD – Completing a Bearish “Running Flat” into resistance by DanV on TradingView.com
18 January 2020
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.
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DanV
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