Bitcoin (BTC) seems to be tracking the pathway put out in this morning's short term update. Price has dipped below the blue upward pointing wedge. The Right Shoulder (RS) pattern formation remains in the process of completion and likely most of today and night will work on that.
From the larger perspective, the blue Wave D is still in progress and blue Wave E is projected to be a third wedge pattern.
The daily MACD is at the point of contact between the white 12 day and the red 26 day moving averages. Further upside is needed to enable the cross upwards for a buy signal.
The below is called the Bitcoin Misery Index (BMI) put out by Tom Lee from FundStrat. The BMI was recently registered at a near all time low of 18.8. The buy signal is when BMI is below 27 and each time this level was attained, prices were much higher 3-4 weeks later. It's a very good contrarian indicator.
(Source: FundStrat; Tom Lee)
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Elliott Wave Counting Tutorial #1
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