Skip to content

Blocksmith Says: Bitcoin in Final Push Up Ahead of Month-End Low

Table of Contents

Despite a little bullish burst in crypto and other equity index futures across the board so far today, the view stands that we are not due a low in Bitcoin until the end of the month.

The hourly chart here shows Bitcoin channelling up from the 20 August low, in what I still think is a wave 4 congestion phase. Since the dominant trend at this degree of magnitude is down, we are anticipating a final wave 5 push lower.

The advance has been extremely choppy and all of that overlap speaks to a corrective structure rather than a non-overlapping impulsive advance with legs. I am not expecting price to reach this high, but US$22,400 (some 3% higher) marks the 4 August spike price low and is the bottom of a potential resistance band.

Nor is MACD behaving consistent with a burgeoning rally: it is cluttered and wandering around more or less aimlessly. Momentum tends to lead price and as a lead indicator here, it does not imply a robust build up in power. Waiting for this push to exhaust itself and for price to sink lower again.