After a complex but deep correction in wave 4 Bitcoin shows the first strong signs of a bottom being in place and the final rally in wave 5 ready to take off. Short-term, we would like to see a break above minor resistance at 40,905 to confirm that wave 4 has completed and wave 5 is in motion for a rally above the peak in wave 3 at 58,354. The ideal target for wave 5 is seen at 97.798.
Short-term we expect support at 37,650 will be able to protect the downside for the expected rally above 40,905, but only a break below key-support at 34,630 will delay the expected rally in wave 5.
Trading recommendation:
Buy Bitcoin on a break above 40.905 for a rally towards 97,798.
The material has been provided by InstaForex Company - www.instaforex.com