BITCOIN: Bearish Reversal Imminent?

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[Last week, I said that it is “likely that we will see one more high into the $6700 to $7000 zone”. We now reside in that zone and I am watching carefully for signs of a breakdown to complete the correction we’ve been in since the start of this year.

As always, I would like for you to first keep the bigger picture in mind:

Just like before, the “ideal” end of this correction is at $4800 with the possibility of extending to $3100. If $3100 is broken decisively, crypto may not recover for a very long time. But to be clear, I do not expect this to happen. We should see the higher targets of $48k to $82k before $3k.

On the 6 hour chart, I have been tracking an impulse off of $10k that leads down to the $4k region. We should now be completing the fourth wave and soon starting the last major leg down.

For completeness, I have the alternate red bullish impulse marked on the chart as well. If we do not break below the green line ($6300) and then go above the red one ($7050), then this will become my primary count. Until then, I am looking down.

On the 90 minute chart, it is extremely unclear if this impulse for 3/c has completed. I am counting this last move as an ending diagonal which may or may not need another wave up. I’ve marked both scenarios above. Either way, pressure remains down from the larger time frame patterns.

I am currently out of any swing trades and am fully hedged. If $6300 breaks, I will look for retraces to put on a swing trade to the short side. If $7050 definitively breaks, I will remove my hedges on a retrace and continue to watch carefully as this will open the door to a number of possibilities. I want to emphasize that I would be very surprised if this was the case.]

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Happy trading!

Charlie You
Altcoin Mentors, Inc.
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