We entered into a swing trade long at 33,650 and have reached two price targets, with the third one being 48,650 (which was missed by 400 pts). Since we are playing with house money at this point, there is no reason to exit earlier, even in the face of a potential sell signal. Here’s why:
Within the current Wave 5 impulse, only 4 subwaves can be counted. This means one more bullish leg is likely to follow before Bitcoin begins it’s broad Wave 4 consolidation. Want to see an example of a broad Wave 4? Take a look at a Gold chart since August. Initially it will look bearish, and the key will be to identify its support levels.
At the moment, as long as 40K and 42K areas are not compromised, we anticipate the current consolidation to develop into a trend continuation pattern that can lead price into the low 50Ks over the following week. Will it peak in the 50Ks? Trying to pin point a peak is the same as gambling. All we can say is price is entering into the 5th of a 5th Wave which means a peak is coming, but it is up to price action to confirm the location. Many like to “predict” a peak but that only leads to having an opinion and markets do not care about opinions.
If you would like to know more about GreenBridge Investing and how our swing trade strategy works, visit https://bit.ly/marketsignals and give us a try free for 7 days.