Looks like a New Years Bull Rally. Maybe - Let's be cautious here. The further we go into a correction the better our idea of where we are in the cycle. Have we completed the cycle?
First we broke the $13,440 and $13,835 levels both important levels to break, but we hit head on our mid term trend line and we are currently consolidating. I added a small position here and will add another a break out of $14,000 level with a near term target of $1501.00 Will address the chart when we get there.
Keep in mind the following
#1 I'm building a position, not all in.
#2 we can reverse like we did the previous 4 times and head lower.
#3 I only want to have a full position when it is very clear we are in a wave 3 and the RSI is over 60. Last fake break cost me a few bones so I'm gun shy here!
#4 The further into a correction the better idea of important levels for us to look at. What interesting is how fibb levels start to line up with previous support and resistance levels helping us painT a better picture where a few days ago the picture was not as clear. The water is clearing up some here.
Bottom line we the recent sell off could have been for many reasons, people selling losses as they just entered the space and were facing realized losses, and decided to just exit the position to claim those losses vs other gains. The flip side of that is that people that bought earlier in the year could be waiting for the 1st of the year to sell their profits! So we can not factor out a retest of 11k. Now is $6,000 - $8,000 possible? Absolutely! Is it likely? I'm not sold, mainly because too many people are calling for $8000, and money is sitting waiting for it to get there! Buyers will be in way before that. I will. Heck I will be selling apple -1.08% stock at that point and going long bitcoin! I'm joking do not take it seriously - nobody should sell Apple -1.08% stock, but there are some I just might!
In closing the rest of the market is recovering nicely. So as Bitcoin -1.95% picks up steam and people sell profits in alts I'll be looking to add to some solid positions. I will update some others later! I really like Ethereum 2.86% here as well and have added to the long term. The last few corrections Bitcoin -1.95% out performed the alts during the beginning of the recovery. I'm seeing if it happens here as well as history and markets often repeat the same behavior!
YOU ALL HAVE A SAFE WONDERFUL NEW YEAR'S! NEXT YEAR HAS A LOT IN STORE FOR US!!!!
5 hours ago
Comment: We may trade sideways for a couple weeks and there will be some volatility along the way. I still am not sold we see $8000 let alone $5000 but anything can happen, and I believe it will be so brief I already have orders in at both levels just in case. But I still think 11k is the lowest we go and I am just looking to add on any dip. Wall Street is just entering the market so I just do not see a huge correction yet! But here is my simple trend chart with the current trend lines and also some pullback levels as well as time of the correction.
