To keep everyone happy i decided to chart both sides
harmonic comes with a bullish pattern with the last bottom tested at 3.8k also a support line from previous low at 3.660on nov 25th.
target would be 6k but that will be with a big IF it has many resistances to go trough .
Bearish outlook: elliot waves shows an ABC wave with as subwaves 5-3-5 drawed in this chart.
subwave 3 shown as a a smaller abc wave and if this elliot wave is valid it should test the 4.4k.
Bottom of main C wave at 2900 is supported by the ema 200 weekly and is historicaly multiple times tested and followed by a bullish period .
the odds of this being the mid to long term bottom is great.
Bitcoin right now sits in a channel between a newly formed support line and a previously long term support channel that became a resistance on nov 22th wich also could become a pennant .
as stated above there are difirent views of how this may play out .
and i wouldnt suprise there would be more alternative idea’s, but from what i can see.
However both ideas show that in the short term we will test the 4.4k resistance, from there its crucial to see what is going to happen next, a break would greatly increase the odds of harmonic idea playing out,.
If it does not break we will see either the bearish idea playing out or a pennant continues to form in this zone.
Thanks for reading and if this chart was informative be sure to give it a like and follow me for future idea’s
Have a good day!
short term view
target 1 4.000 (green resistance line that is connected to the downtrend channel that been formed the past weeks, breaking that would lead to my second target thats sitting at 4.400 (purple resistance) this resistance is known previously as a support line that holded for a year and now became a resistance.
failing to break any of these targets will result in a retest of the purple support line curently sitting at a price of 3800
potential inversed h&s keep an eye on the resistance line