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Next wave of impulse to start in cryptocurrency?

After an 11-day increase, we saw a 3-day corrective move. It is entirely possible that today's price action is the beginning of the next wave of confident impulses.

3rd wave of impulse? Today's candlestick shows a good chance.

Bitcoin had a wild and big December. After coming out of the November massacre that saw Bitcoin fall from the 6540 swing peak on November 7thth at the 2018 minimum of 3128.89 on December 15thth (a loss of -52.16%), Bitcoin has staged a possible restore configuration. From December 15thth low of 3128.89, Bitcoin rallied higher at 4239.37 on Christmas Eve (December 24th)th). That move represented a gain of + 35.49%. From December 24thth, Bitcoin then moved to 3567. The move has declined since December 24thth to December 27thth he made a move of 3 days after an 11-day move. This is important because Gann has listed series of 11 as important swing date ranges. In addition, Gann wrote that after a move from 7 to 11 days higher, it was expected to see at least a 3-day move back – which is exactly what we see playing on the Bitcoin chart. What makes this 3-day shift even more important is the price at which it has stopped. The area with a value of 3567 represents the Fibonacci retracement level of 61.8% of 4239 and 3184, a powerful inversion area.

Elliot Wave operators may consider today's trade as the end of a corrective wave and the beginning of the third wave of confidence in the current price action. The key price level for the design of this level would be close to the 5041 value area. What is very interesting in the day's move was the power behind this move. The volume of trade is higher than yesterday (December 27thth) as well as the trading range. Depending on the data that a trader watches, there is an overwhelming and bullish candle pattern on the daily chart, which is one of the strongest bearer candle models in the Japanese candelabra analysis. Traders should also see that price action is forming what could be a right shoulder in a reverse head and shoulders pattern, with a break in the neckline above the swing prior to 4239 is a key level from break over and then repeat the test to move higher.

Traders should also note that the end of a 192-day Vibration cycle takes place on 6 Januaryth. The fact that the lows of 2018 from the most significant bear move in the history of Bitcoin occur near this new cycle of the Vibration Law and that it is close to the start of the next trading year 2019 is a signal very powerful of a strong inversion of this bear trend. In terms of volume, traders should observe inflows in altcoin markets as a very bullish signal as it indicates that traders are willing to leave Bitcoin's security to speculate on the riskier instruments on the cryptocurrency market.

Also, I hope everyone has had a wonderful Christmas break and fantastic moments with friends, family or anyone you've spent your vacation with. And let's look at 2019 as a new year with new profits to be made!

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