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Blocksmith Says: Possible New Upside Start for BTC

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In previous notes, we looked at the two candle sequence on 18 and 19 June that may have stopped the big price decline from end March. The wide day bullish engulfing pattern (the long up candle on the 19th almost completely covers the previous session’s long down candle).

The somewhat sporadic price action within this ostensible base still has a corrective feel to it, but a good push out of the base top (let’s say at US$21,860) should mark a new upside start in Bitcoin. There are a couple of technical reasons to believe this, not least of which is that the move down from March counts out in five waves.

To learn more about this, please see the latest study notes on Elliott Wave theory.