Bitcoin Triangle Points To Test Of 14K?

Bitcoin lingers within the 11,600 to 12,300 resistance zone. This can be interpreted as a sign of strength since resistance often asserts itself quickly. As a result, price appears to be developing another triangle which can act as a trend continuation pattern and it may break higher this week.

If we get a new buy signal, price is now in a position to test the 14K historical peak that dates back to June of the previous year. This level is also notable because IF price closes decisively above, it will confirm that the current structure is in a Wave 3 configuration. (Wave 3's need to break above Wave 1 in order to confirm). This will prompt us to raise our expectations even further since these motive waves are often the largest and most aggressive within the 5 leg Elliott Wave sequence.

Our ideal inflection point is also the same as previously mentioned. The 10,500 area would be a much more attractive location for a new swing trade long (based on our strategy), but the market may not provide such an opportunity. Keep in mind, quality opportunities begin with a well thought out premise and clearly defined risk, they are NOT the result of an emotional reaction to some kind of stimulating information (such as news or infotainment).