The pattern is unclear!

9 Agu 2016

Bitcoin bounced back after the low at $465. The size of the move is big and one would say that the new bull trend has been reestablished. Unfortunately the pattern is not very convincing. To trust the bulls I need to see a clear 5 waves up. Some exchanges like BTC-e, and Bitstamp show a very ugly 5 waves move which I can consider as an expanding leading diagonal. Every time I see this pattern I prefer to keep some skepticism about the reliability of the pattern. For the other exchanges it looks more like a corrective up move and we have to prepare for at least one more new low. I need to see how BTC will test the bottom at $465 and then will be able to make a new forecast. There are several supports: 560, 550, 530 and the fibo retracements. If the bottom is already formed then some of this levels will give support for the price and the bulls will reemerge.