BTCUSD Elliott Wave and Technical Analysis – 23rd December, 2017

Has the Bitcoin bubble burst? I look at price and volume, along with trend lines, to answer this question.

Last analysis stated: “Instead of trying to figure out where this bubble may go, I’ll focus on figuring out when it may have popped. A strong bearish candlestick pattern at the weekly chart level and a trend channel or trend line breach will be looked for.”

There is a completed weekly candlestick at the end of today’s session, and it is a strong bearish engulfing candlestick pattern.

But the channel is not yet breached.

Volume supports the idea of a high in place, but the bottom line is that there is substantial risk to any short position while price remains within the channel.

Look now for a bounce to not make a new all time high, which should exhibit weakness in volume. Then look for the channel breach.

Manage risk diligently.

ELLIOTT WAVE CHARTS

2 WEEKLY

Bitcoin 2 weekly 2017
Click chart to enlarge.

WEEKLY

Bitcoin weekly 2017
Click chart to enlarge.

DAILY

Bitcoin daily 2017
Click chart to enlarge.

VOLUME ANALYSIS

Bitcoin volume 2017
Click chart to enlarge. Chart courtesy of Bitcoinity.org.

A huge drop in volume suggests exhaustion.

Published @ 02:22 a.m. EST.

13 thoughts on “BTCUSD Elliott Wave and Technical Analysis – 23rd December, 2017

  1. If you draw a long held channel this way (see chart) there has been a breakout and a back-test. Does this not look bullish? Thanks.

    1. If one looks at the long term chart of a bubble “Dow to Gold ratio” caution is the word.
      Once these long channels are broken the top is closer than one expect.

      1. If one looks at the last peak and bottom they were separated by 20 year cycle. Next 20 year bottom from 2000 top is due in 2020. Which is at ratio of “1”.

      2. Hey Papudi,

        Nice chart. Looks like it ended in Feb 2017. I made an attempt to count the move from the 2011 to current. I may be wrong, but it looks like there may be one more high this year before the big move down. If correct, it suggests that the DJI shows relative strength vs. gold for a few more months. Thoughts?

        https://www.tradingview.com/x/KUmIVtWO/

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