The Bitcoin market is relatively unchanged from yesterday. A bit higher but nothing remarkable. Here is the 8-hour chart we looked at yesterday:
As we can see, the 2nd arc of the pair provided support, but the top of the square has been solid resistance. This leads us to the recurring question traders ask all the time” Which will give first? Resistance or Support?
I continue to believe that the support will give first, for reasons discussed at length in recent columns. In a nutshell, it’s because the 1st arc pair has already been violated 3 times. I expect it is therefore highly likely that we will see a test of the 2nd arc pair.
If my working hypothesis that this is an A-B-C wave pattern is correct, then one more wave down to the area of the A low would be appropriate. Anywhere in the yellow highlight would be tidy on several levels.
Here is the daily chart: