All eyes on 9675$

22. Aug. 2019

Greetings everybody,

Let's take a look what we have on BTC today. So, our "222" Setup is done perfect. Now, on longer-term chart we mostly consider large AB=CD downside pattern with potential target around 7.5K.
Our task for today is to clarify, whether this downside action is continuation of our bearish swing or not yet. Alternitavely we could get larger daily upside retracement and "222" Sell pattern.

It will not destroy our view, but change the shape of the pattern. To do this (I mean clarification), we need to keep an eye on 9675 lows today. On 1H chart you could see that market is forming 3-Drive "Buy" pattern, which
potentially is bullish and could become a reversal point of 2nd upside leg.

Thus, if market fails to form 3 Drive and drops back to the lows - this will lead ot their challenge and following breakout, as BTC is neither at daily Oversold nor at some Fib support right. Conversely, upside reversal around 9675$ will mean at least to pullback and completion of 3-Drive "Buy" target (which is the top between 2nd and 3rd Drives) or full CD upside leg, as maximum result.

Thus depending our your view on the market, you could consider these setups. Bears - drop below 9675 and action back to the lows, bulls - using this 3-Drive "Buy" pattern as a background of the trade.