Does Bitcoin Need a Day or Two for Correction?

Isuppose it is pretty clear that it was a good idea to resist the urge to chase yesterday’s rally in Bitcoin. As we hypothesized yesterday, it was, in fact, a swing high we would have been buying. I had been concerned yesterday with the fact that the 8 – 1 Gann angle stopped the rally (yellow highlights). So, what do we do now? Well, let’s first look at the bear setup on the 2-hour chart:
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We can see that we have a close below the 1 – 1 Gann angle, which is a bearish indicator. What concerns me is that if you see the blue arrow, during the panic low price broke both of the 4th arc pairs, briefly. Now, that might have been just an ‘overthrow’ from panic selling. But in many cases, when arcs have been pierced like that they will be tested again. So I am inclined to expect a re-test of the 4th arc pair. If broken, the 5th arc would be the likely target. We will see.
But before price can test the 4th arc, it must get through the 3rd arc pair, and the 3rd arc pair is often a trend stopper. So I will watch that area with blue highlights very carefully to see if it shows signs of being broken or not.

This post was published at Crypto Coins News on 10/11/2016.