BTC Technical Analysis June 5, 2018

I made a slight change in my count since yesterday. I believe the current count is technically more accurate. We are currently in an Extended Flat and could be close to finished with the correction. If we are not finished, statistically we should complete within the green box.

Bullish Divergence

I see Bullish Divergence (Yellow circle) on the RSI between the last 2 lows, indicating a change in direction.

Long Term View

My long term view is bullish as I believe that we are setting up for a bull market for the summer. There are several reasons of why I think this covered in more detail in another post.

Bearish View

Then there is the bearish view which I try to keep an open mind about so that I am mentally prepared. If we close below the lower white trend line on the daily chart, it will invalidate the bullish count and we will have to consider lower lows and a bear market.

A Silver Lining

However, note the decreasing volume indicated by the green arrow as prices generally are declining. Lower volume and a decreasing price is Bullish. When sellers are exhausted there will be a more explosive upward move in price as buyers step in.

Once we break the upper trend line (see the long term chart), other buyers will pile in and we will see another bull market. Many big investors are accumulating and waiting on the sidelines waiting for a bullish confirmation.