Bitcoin: bulls ready to go

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There's a bullish Wolfe Wave pattern on the Bitcoin's one-hour chart. The price faced support on the 1-3 line, so there's a green light for a bullish rally. Moreover, there' a pullback from the 0.786 retracement level of the previous upward price movement, which brings more evidence for the bullish outlook.

The main intraday target is the 0.786 retracement of the current decline at 3950.51, which is near the 1-4 line of the pattern. The subsequent pullback from this level could lead to the beginning of a local downward correction. At the same time, more careful and patient traders should wait for a break of the 2-4 line, which will be final confirmation for a rally in wave 6 towards the target.

However, if the price doesn't break the 2-4 line and fixates below the 0.786 retracement level, this scenario will be at risk. If this happens, we should abstain from any long trades until the market comes back above the 0.786 level and then goes through the 2-4 line.

The material has been provided by InstaForex Company - www.instaforex.com