Bitcoin/USD Price Analysis: Slowly building a bearish Gartley

Expect trading to remain mixed and volatile. Selling close to 967 offers a good reward against risk setup for a counter trend move

Bitcoin/USD Price Analysis                                 

Market highlights from the last week

Thursday May 21: After a fresh retreat to below $9,500, bitcoin selling gradually intensified with lows near $8,800 before a recovery to the $9,000 area.

Friday May 22: Cryptocurrency volatility was subdued during Friday and the first half of the weekend with bitcoin able to make limited gains to the $9,250 area.

Monday May 25: Bank Holiday UK and US.

Tuesday May 26: Gains in equity markets provided underlying support to the cryptocurrency complex on Tuesday with bitcoin advancing to the $8,900 area in early Europe.

Wednesday May 27: Cryptocurrencies moved sharply higher just after the European with the initial bitcoin move coinciding with Euro gains.

Bitcoin/USD Price Analysis

Let us have a look at the technical viewpoint: 

Monthly: BTCUSD posted a 3850-low on the March 13 2020. The week May 4 high showed an initial recovery of 161 per cent. 

Weekly: Broken out of the expanding wedge formation to the upside. This pattern has a measured move target of 13880. Previous swing high is seen at 10500. 

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Daily: We have a 161.8 per cent extension level located at 9765 (from 3887-7482). From an Elliott Wave perspective, the last four weeks of consolidation could be seen as a fourth wave correction. The 261.8 per cent extension, or fifth wave, is located at 13512. We are holding within a corrective channel formation. Trend line support is located at 7970.

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Intraday 4-hour: Looks to be forming a bearish Gartley Pattern. A move to 9678 would complete the formation and offer an immediate downward bias. 

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Outlook: Expect trading to remain mixed and volatile. Selling close to 9678, targeting levels close to the channel base, offers a good reward against risk setup for a counter trend move.

Possible trade setup: 

Action: Selling at 9678

Stop: 9978

Target: 8000

Potential return on risk to first target:  R5.5 (reward 1678 / risk 300)

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Bitcoin to US Dollar
Daily change
17137.2
Low: 17129.8
High: 17161.2
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