Bitcoin Struggling

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·@workin2005·
0.000 HBD
Bitcoin Struggling
![bitcoin.png](https://steemitimages.com/DQmVMGqsvihsvnog2RxfeunZyiTv9MerKdu35rYJ7e8gQSg/bitcoin.png)

Bitcoin's been struggling to pick a path. The bulls and bears seem to be in a stalemate. The 2 possible scenarios I've laid out over the past week are still in play. Depending on which scenario we're in, Bitcoin may have completed wave 1 or wave A. Let's look at the bullish scenario first. 

![bullsbears.jpeg](https://steemitimages.com/DQmTitLRHE1KT6AQUaWLpy6DkJF3UQdTfiubkWwuLXuD23A/bullsbears.jpeg)

Assuming we're in 5 waves up, it looks like wave 1 is complete with wave 2 looking for bottom. Wave 2 bounced almost perfectly off the 0.382 fib level, only briefly penetrating with just a wick. This may have been the pivot point, but only time will tell. If bitcoin does drop below the 0.382, there's strong support at the 0.618 fib level ($8,185).

![Screen Shot 2018-05-21 at 4.40.16 PM.png](https://steemitimages.com/DQmRPu4PHpA2eLGjVaP4mMgf9ZFEYnathNgcWk4WZdQyExn/Screen%20Shot%202018-05-21%20at%204.40.16%20PM.png)

Zooming out, a logical target for wave 3 (given the weak volume) is the 1.0 fib level. This would be $9.002. If bitcoin drops below the 0.382 fib, it'll most likely drop to the 0.618 fib level ($8,185).

![Screen Shot 2018-05-21 at 4.30.58 PM.png](https://steemitimages.com/DQmSPrbMRwygxwjQrfsxJQ3mtripW5SvnE9Lp8QQ9ouidEJ/Screen%20Shot%202018-05-21%20at%204.30.58%20PM.png)

**Now let's look at the bearish scenario...**

![bull-vs-bear.jpeg](https://steemitimages.com/DQmPn6LeMqyRSsXHqqk7x5LHNqSHvhHNo5E3Ppf3GhuABmc/bull-vs-bear.jpeg)

The bearish scenario has wave A complete, with wave B looking for bottom. If this is correct, I'd expect wave B to drop at least as low as $8,200. It may play out like this:

![Screen Shot 2018-05-21 at 4.57.07 PM.png](https://steemitimages.com/DQmaDtjmzJwY4d5nhckpm4AKrVagvnUpARH5VVe9iDNHpYk/Screen%20Shot%202018-05-21%20at%204.57.07%20PM.png)

Looking at the 1 hour chart, we can see bearish divergence on both the RSI and MACD. 

![Screen Shot 2018-05-21 at 5.08.10 PM.png](https://steemitimages.com/DQmXsHaEsGvyTnffTBfaxhjuhLeJaudXtvSkBkGvy2Q9kDq/Screen%20Shot%202018-05-21%20at%205.08.10%20PM.png)

![Screen Shot 2018-05-21 at 5.05.00 PM.png](https://steemitimages.com/DQmPKd8fp93oJG8vnCYip63Xs5d65TURpLRLukx1XmPbpnP/Screen%20Shot%202018-05-21%20at%205.05.00%20PM.png)

This suggests another drop may be coming ...at least short term. If the volume remains low, I believe a drop is likely. There's strong support at $8,270 (0.5 fib) and again at $8,185 (0.618 fib). If it drops below that level, I'll have to re-evaluate my analysis. 

Looking at the bigger picture, I want to remind you of a descending triangle I pointed out last week. This is a perfect example of mixed signals buried within the market today. A descending triangle suggests a major move is coming, however, the move could be up OR down. 

![Screen Shot 2018-04-10 at 1.11.43 PM.jpg](https://steemitimages.com/DQmef9RofpKnsfARirWMmhiMEHBVDcxYqt9HmMAkRuTVqyK/Screen%20Shot%202018-04-10%20at%201.11.43%20PM.jpg)
![Screen Shot 2018-05-21 at 5.16.49 PM.png](https://steemitimages.com/DQmPrGg2jqbKgpzmrhZ9mhyxxCaVquJhWxFsUJcKKSxYyU7/Screen%20Shot%202018-05-21%20at%205.16.49%20PM.png)

As bitcoin gets closer to the triangle's apex, a breakout becomes more likely. Looking at the apex, one could make an educated guess that a breakout may take place around mid June. Should it drop, there's strong support at $7,000. If it drops below $7K, the next major support area is found at $6,000. If it breaks up, there's strong resistance at $9,940 and again at $11,400. 

**BIAS:**
Short Term: Neutral 
Longterm: Very Bullish

![Logo-Bitcoin-BlackBackground1.png](https://steemitimages.com/DQmSbVeGfPPMP9AJ826B2a2BkhtGyit3c8TAkhDmq8q4wUq/Logo-Bitcoin-BlackBackground1.png)

**I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.**

## **If you found this post informative, please:**
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*Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly. Technical analysis is simply a guide. It doesn’t predict the future. Anyone that claims they know exactly what’s going to happen is foolish, lying or both. Technical Analysis should only be used as a tool to help make better decisions. If you enter a trade, I recommend having a stop loss and sticking to it. You will loose at times. The key is to have more wins than losses. With that in mind, I wish you great success.* 

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