I will keep today's Bitcoin idea short. But before I dig more into it, please shift your attention to this.
Do you remember the following idea? So far the pattern is playing out perfectly:
Fractal B is replicating the waves of Fractal A almost religiously. What's interesting, is that the price action since August 03 has formed a Head and Shoulders pattern and this has given me the following idea.
I looked more into the price action since the March recovery and discovered that (roughly) similar Head and Shoulders (H&S) pattern have formed inside the Channel Up. In fact after every H&S, an aggressive rally follows. Interestingly enough, we may have a new Channel Up (B) emerging after the 2nd H&S formation. It remains to be seen if the current H&S will also create a new pattern after its (expected) rally.
So do you think the current Head and Shoulders pattern will hold (and as a result Channel A) or it will break slightly lower to the Higher Low trend-line of Channel B? Feel free to share your work and let me know in the comments section!
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@TradingShot, 10.5k is critical indeed. Any lower than a 50% retracement and my count gets invalidated. I do reckon 10.5k holds though for an expanded flat.