Bitcoin Price Explodes Up

By Raul Fernando Luna Toro at EWFOREX.NET

$BTCUSD PRICE ACTION

Bitcoin price opened at $27440.55 this morning and hit an intraday low of 26658.45, an intraday high of 27746.55 before settling at the 27398.40 where its trading now. Chaikin Money Flow is at 0.110 signaling that the bulk of the volume is now favoring the upside. The (20), (50) and (200) EMAs are in their bullish line up. Volume is strong for the week. The ADX is trending strongly at 29.22 with +Di well above -Di. Technically these indicators are signaling a strong trend to the upside.

Bitcoin Price Action

Above is a daily $BTCUSD price chart by StockCharts.com with (20), (50), and (200) EMAs along with (14) ADX +Di -DI and a Chaikin Money Flow Index.

Elliott Wave Bitcoin Price Action

Bitcoin price has moved up dramatically this week.  This opens up the chance that the correction up from the $15476.00 Nov 21 low is heading for a test of the 69000 all-time high.  If this week’s high hadn’t been so strong, the zigzag forecast for Cycle IV would still be in play along with the retracement to the 61.8% BvsA. 

However, this scenario is now fading fast due to this week strong move up. It, now, looks like this correction down from the all-time high is turning out to be either a regular or expanding flat forming.  Flats always retrace their commensurate A waves by 90 to 100%.  Expanding flats retrace more than 100% and up to 138.2% of their A waves. 

From the daily chart, you can see just how strong the move is from the $19549.09 March 9th low.  Notice that the force of the move is much stronger than the first impulse that completed at the $25250.00 Feb high. Plus, the move has breached the Minor Degree 1-2 upper channel trend line in 3rd wave fashion.

C waves’ momentum are usually weak in comparison to their commensurate A waves.  Also, they hardly ever break out of the 1-2 channel as this one has done here.  These channel breaks usually always signals a 3rd wave advance of a larger impulse forming.  This all points to the possibility this B wave correction is heading up much higher.

Bitcoin Price Weekly Chart

Bitcoin price weekly chart
Above is a weekly bar chart with Elliott Wave labeling by Raul Fernando Luna Toro

Bitcoin Price Daily Chart

Bitcoin price daily bar
Above is a daily bar chart with Elliott Wave labeling by Raul Fernando Luna Toro

From the 1-hour chart, the shallow 2nd wave retracements also point to the possibility a wave 3 is forming.  Both Minute and Minuette Degree 2nd waves are shallow.

Bitcoin price 1-hour bar
Above is a 1-hour bar chart with Elliott Wave labeling by Raul Fernando Luna Toro

A breakdown below the lower channel trend line would favor the 61.8% B wave retracement which would leave open the possibility a zigzag was still forming for Cycle IV.  However, the only thing favoring this is that the move down from the all-time high counts best as a five which is what we need for a zigzag.

But it can also be counted a double zigzag which favors the Flat move for a test of the all-time high.

Crypto Fear Greed Index

Crypto Fear Greed Index

Crypto Fear Greed Index

Crypto Fear Greed Index

Conclusion

We can now expect a move to the all-time high. BTC/USD is on a tear and it looks like the retracement up from the November low is has gone from a zigzag to either a regular or expanding flat. It now looks like we are getting a test of the all-time high.

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