November 9, 2021
Bitcoin has yet again rallied through all-time highs around $68000 on Monday. The crypto has reached new highs amidst bearish divergence on the daily RSI, not shown here. Potential still remains for a decline towards $52000 and up to $50000 before the rally resumes.
Bitcoin’s larger degree wave structure is indicating that Wave (5) might be close to terminating or is complete. We can see three wave structure since $67000 levels, which means Wave (5) is still progressing.
Having said that, Bitcoin remains vulnerable to a corrective drop through $50000 mark at least. The proposed structure is that of an expanded flat, which could drag toward $52000. Also note that trend line support is passing through the same zone, which is encouraging for bulls.
Further note that $52000 mark is the fibonacci 0.382 retracement of the recent rally between $28600 and $68000 mark respectively. Potential remains high for a bullish reversal if prices drag through $40000-52000 zone, going forward.
Alternatively, a drop below $40000 and subsequent break of trend line support will confirm that upside is complete. Traders might then prepare to sell on rallies against $68000 high. At the moment, it is good to wait for a corrective drop before initiating long positions.
The Profinacademy.com Team
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