Major Crypto Bottom Likely IN | Strategy Notes for the Week of June 3

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Last week, I noted: “Bitcoin cruised through and is now sitting above $7100, the critical support that it must hold to maintain the 1-2 as likely… If we do not get a reversal soon and in the form of impulsive waves, I will have to look down. Until then, things are still looking fine for the bullish case.”

In the past week, Bitcoin only nominally broke the crucial $7100 support before swiftly reversing in an impulsive manner. This is highly supportive of an overall bullish market.

However, we only have seen completed impulses in smaller degrees. It is still possible to see failures here and go deeper into longer term supports. But until the smaller time frame supports are broken, I will assume that the impulses will complete. For Bitcoin, $7550 should not break until there is a completed impulse above $8000. Confirmation of a bottom in will be an impulsive break above $8650, the 61.8% retrace of the correction off the April highs.

The more I look at the structure of Bitcoin off of the December highs, the more I am considering the bullish triangle I presented last week as likely. This would mean that we are now at the start of the impulse that will bring Bitcoin to my larger time frame target region of $48k to $82k.

But we won’t have confirmation of this until we see the retrace off of a completed minute impulse (marked circle-i above). Until then, there are still 4 bearish counts in play as well as 3 bullish ones.

As I have noted before, Bitcoin is largely alone in having an extremely ambiguous larger structure. Nearly every other altcoin is relatively straightforward and setting up for bullish impulses.

No matter what the larger pattern is, the strategy for this week will be to continue to watch for breaks of support or continuations of impulses. If we do see larger impulses complete (marked i on the chart above), I will be taking profits on some of the positions I am overweight on and then waiting for the retrace (ii above) to add to positions I am underweight on.

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Charlie You
Altcoin Mentors, Inc.
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