The Markets at this point are sending mixed signals. For those philosophically minded, it comes down to a debate on which set of arguments is most convincing. For the Bulls, the break of a major overhead trendline stretching back to December 2017, the constant advancement higher and the major moving averages acting as support, this would be a bullish setup. Those are entirely valid perspectives. For the Bearish case, we would argue that the current RSI Divergence on the 4Hr Bitcoin chart despite breaking new highs is NOT a good sign. The fact that ETH and XRP, as we have stressed in the past, are not confirming the move that Bitcoin has been making and remain looking like very Bearish charts. Ethereum has many practical real world applications such as 'Smart Contracts', while Ripple has tremendous potential in the banking sectors for cross-border wire transfers of large sums of money instantaneously. Yet, they are hardly catching a bid in terms of price action. Meanwhile, Bitcoin has and will continue to be traded as a store of wealth, the high fees and slow speed of transactions make Bitcoin terrible for anything but as a form of speculative investing. This leaves Bitcoin as an investing hot zone where speculative money easily flows into but then easily flows out of it just the same. Below we have supplied both Bullish and Bearish scenarios for Bitcoin. In full disclosure, we were ready to turn Bullish today but the price action is telling a different cautionary tale. Stay tuned.
This is the Bullish Scenario for Bitcoin and we could see a MAJOR ABC correction here. Other counts have it for another wave higher but that might be a bit too ambitious.
