{"id":58066,"date":"2018-02-10T09:42:24","date_gmt":"2018-02-09T23:42:24","guid":{"rendered":"http:\/\/www.tradecharting.com\/?p=58066"},"modified":"2018-04-20T06:27:56","modified_gmt":"2018-04-19T20:27:56","slug":"bitcoin-8000-wave-3","status":"publish","type":"post","link":"https:\/\/www.tradecharting.com\/bitcoin-8000-wave-3\/","title":{"rendered":"Bitcoin, $8,000 and Wave 3."},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\">There have been two features I&#8217;ve been waiting to see form on the Bitcoin chart in order for the crypto-space to garner some technical analysis credibility and one of these has finally been achieved. That is, a test of the key $8,000 level and a weekly candle close above this level. The next feature is to see whether this $8,000 level can hold and so I will be watching the chart over coming sessions to see if this basing-style activity can be achieved.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><!--more--><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\">This post follows on from one I wrote about Bitcoin a couple of weeks ago that is available through this <a href=\"https:\/\/www.tradecharting.com\/bitcoin-wave-3-riot\/\" target=\"_blank\" rel=\"noopener\">link<\/a>\u00a0and back then I was looking out for any potential test of the key $8,000 level. Well, we&#8217;ve finally had that test and weekly candle close above the key level but it is what happens to the currency from here that I think will help to define the whole cryptocurrency space.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\">I remain interested in cryptos whilst fully aware that debate ranges from claims this is nothing more than a <a href=\"https:\/\/www.investopedia.com\/terms\/p\/ponzischeme.asp\" target=\"_blank\" rel=\"noopener\">Ponzi scheme<\/a> or akin to the <a href=\"https:\/\/www.investopedia.com\/features\/crashes\/crashes2.asp\" target=\"_blank\" rel=\"noopener\">Tulip mania<\/a>\u00a0to one where this is a legitimate and long-awaited disruption to traditional banking systems. I make no forecast here at all but still consider the <em><strong>Utility<\/strong><\/em> function of Blockchain might help to, ultimately, give credibility to all crypto-currencies. I listened to a great podcast during the week on this very topic and I highly recommend traders who are interested in cryptos to take a listen as well. The podcast was <em>Episode 176<\/em> <strong>Investing In Cryptoassets<\/strong>\u00a0with <strong>Jack Tatar<\/strong> on\u00a0<a href=\"https:\/\/itunes.apple.com\/au\/podcast\/futures-radio-show\/id1017809838?mt=2&amp;i=1000400408807\" target=\"_blank\" rel=\"noopener\">Futures Radio Show<\/a>. I also note with much interest that the <strong>Reddit<\/strong> co-founder, <strong>Alexis Ohanian<\/strong>, <a href=\"https:\/\/www.newsbtc.com\/2018\/02\/08\/reddit-cofounder-alexis-ohanian-takes-backseat-focus-blockchain-investments\/\" target=\"_blank\" rel=\"noopener\">has announced<\/a> he is stepping down from day to day duties at the website to focus on Blockchain-related investment opportunities.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 14pt;\"><strong>Technical Analysis of BTC\/USD<\/strong>:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\">I have been at trading and investment meetings recently where people have stood and claimed, with a high degree of confidence, that cryptocurrencies are not legitimate trading vehicles because they do not conform to technical analysis. I beg to differ here! I am a keen enthusiast of <a href=\"https:\/\/www.investopedia.com\/articles\/technical\/04\/033104.asp\" target=\"_blank\" rel=\"noopener\">Fibonacci <\/a>as I find it to be a great register of the herd mentality that is operating on particular trading vehicles and at particular times. I have a <a href=\"https:\/\/www.tradecharting.com\/fibonacci-anlysis\/\" target=\"_blank\" rel=\"noopener\">separate page<\/a> on my site where I chart Fibonacci related charts. I have been applying Fibonacci to the BTC\/USD currency pair for some time now and noting that the 61.8% fib level, a very popular level, is down near the whole-number $8,000 level. Thus, I have been long waiting for any test and hold of that region which has finally be achieved in the last week:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><strong>BTC\/USD weekly:<\/strong> the weekly candle has held above the key 61.8% fib near $8,000. Price action is also above the weekly Ichimoku Cloud, another type of support zone:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-58176\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-1024x576.jpg\" alt=\"\" width=\"584\" height=\"329\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-1024x576.jpg 1024w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-300x169.jpg 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-768x432.jpg 768w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-500x281.jpg 500w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly.jpg 1920w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/a> <a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-58177\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud-1024x576.jpg\" alt=\"\" width=\"584\" height=\"329\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud-1024x576.jpg 1024w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud-300x169.jpg 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud-768x432.jpg 768w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud-500x281.jpg 500w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweeklyCloud.jpg 1920w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\">There is another technical feature on the weekly chart that has formed up this week and this is a bullish-reversal Hammer candle which only goes to add confluence to this hold above the key 61.8% Fibonacci and $8,000 whole-number level:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-58188\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3-1024x576.jpg\" alt=\"\" width=\"584\" height=\"329\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3-1024x576.jpg 1024w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3-300x169.jpg 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3-768x432.jpg 768w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3-500x281.jpg 500w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSDweekly-3.jpg 1920w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><strong><span style=\"font-size: 14pt;\">BTC\/USD daily<\/span>:\u00a0<\/strong>the daily chart is offering us Flag-style trend lines to watch for any new <em><strong>make<\/strong> <\/em>or <em><strong>break<\/strong><\/em>. Price action is below the daily Cloud though so any recover effort may not be smooth trading:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-58185\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9-1024x576.jpg\" alt=\"\" width=\"584\" height=\"329\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9-1024x576.jpg 1024w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9-300x169.jpg 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9-768x432.jpg 768w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9-500x281.jpg 500w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-9.jpg 1920w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/a> <a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-58187\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3-1024x576.jpg\" alt=\"\" width=\"584\" height=\"329\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3-1024x576.jpg 1024w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3-300x169.jpg 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3-768x432.jpg 768w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3-500x281.jpg 500w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-1-3.jpg 1920w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><strong><span style=\"font-size: 14pt;\">Elliott Wave<\/span>:<\/strong>\u00a0Elliott Wave Theory, in very simple terms, states that all market action follow a repetitive rhythm in the direction of the main trend in a series of five waves. The upward or advancing waves are 1,3 and 5 and the corrective moves occur in waves 2 and 3.\u00a0 This is really just another simple way of saying that trends do not travel in straight lines forever, something I mention often! The important feature to note here though is that Wave 3 is generally the strongest wave:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/Elliott-Wave.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-58190\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/Elliott-Wave.png\" alt=\"\" width=\"620\" height=\"376\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/Elliott-Wave.png 620w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/Elliott-Wave-300x182.png 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/Elliott-Wave-495x300.png 495w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\">I am on the lookout to see whether BTC\/USD is setting up to conform to just such a technical pattern and about to embark on a Wave 3 move. If so, this would suggest a rather bullish run could be ahead for the currency:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><a href=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-58191\" src=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10-1024x576.jpg\" alt=\"\" width=\"584\" height=\"329\" srcset=\"https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10-1024x576.jpg 1024w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10-300x169.jpg 300w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10-768x432.jpg 768w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10-500x281.jpg 500w, https:\/\/www.tradecharting.com\/wp-content\/uploads\/2018\/02\/BTCUSD-10.jpg 1920w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/a><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12pt;\"><strong><span style=\"font-size: 14pt;\">Summary<\/span>:<\/strong> Bitcoin has tested the key 61.8% Fibonacci retracement level but managed to close the week above this and the whole-number $8,000 level. In doing so, BTC\/USD also printed a bullish-reversal Hammer candle helping the currency to achieve two significant charting features thereby conferring some technical credibility. I will be watching to see if the currency can hold above the key $8,000 level and whether any Elliott Wave 3 behaviour develops from this point on.<\/span><\/p>\n<p><span style=\"font-size: 12pt;\"><strong>Disclosure<\/strong>: I have been dabbling in this space by trading RIOT.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There have been two features I&#8217;ve been waiting to see form on the Bitcoin chart in order for the crypto-space to garner some technical analysis credibility and one of these has finally been achieved. That is, a test of the key $8,000 level and a weekly candle close above this level. The next feature is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-58066","post","type-post","status-publish","format-standard","hentry","category-crypto"],"acf":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p3aZFM-f6y","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/posts\/58066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/comments?post=58066"}],"version-history":[{"count":5,"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/posts\/58066\/revisions"}],"predecessor-version":[{"id":58213,"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/posts\/58066\/revisions\/58213"}],"wp:attachment":[{"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/media?parent=58066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/categories?post=58066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tradecharting.com\/wp-json\/wp\/v2\/tags?post=58066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}