![Screen Shot 2018-06-15 at 6.20.45 PM.png](https://cdn.steemitimages.com/DQmbr6sL1CCknNr63LcQhWD4G9CE1R6p5iKrebioH73BGUj/Screen%20Shot%202018-06-15%20at%206.20.45%20PM.png)
### Yesterday I warned bitcoin was continuing to look weak. I told you I closed my position and was preparing for a drop to $7,400. Price did drop, but found support at the 0.786 fib level ($7,460), missing my target by $60. Price has been consolidating sideways for about 14 hours. It looks to be operating within a small wedge. This suggests a larger move may be coming in the very near future. 
![Screen Shot 2018-08-01 at 2.08.08 PM.png](https://cdn.steemitimages.com/DQmQi9LGhFrN3TKD6sWxMgU2hPLJkdduwMmKZpNA8tmJe3t/Screen%20Shot%202018-08-01%20at%202.08.08%20PM.png)
### If price breaks down, watch for a bear trap, double bottom at $7,460. If price breaks up, watch for a bull trap, double top at $7,652 for the current microstructure. Should bitcoin decisively break down, it should initially find some support in a small demand zone between $7,400-$7,350 (0.8865 fib). 
### If price breaks up, it needs to break out of the descending resistance on the 1 hour RSI. Should this happen, we can expect a rise to at least $7,700.
![Screen Shot 2018-08-01 at 2.28.11 PM.png](https://cdn.steemitimages.com/DQmXVKdfbXfmAFJtEXmR5K3ofJDmN2BpdsPK7GHZtN3tsjV/Screen%20Shot%202018-08-01%20at%202.28.11%20PM.png)
### Looking at the 1 day chart, we can see price dropped below the 8 day EMA. It’s found some support at the 21 day EMA. 
![Screen Shot 2018-08-01 at 2.31.43 PM.png](https://cdn.steemitimages.com/DQmY7pmL8osoVsqimh1PNSKBPVpP5TsMVf8MaH61k6iUt5n/Screen%20Shot%202018-08-01%20at%202.31.43%20PM.png)
### From an Elliot wave perspective, I believe bitcoin is on primary wave 2. Price has reached the point where we should start looking for a bounce to begin wave 3. If the market is to remain bullish, probability tells us we should see a bounce between the 0.382 fib level and the 0.618 fib level. If this is the bull run everyone hopes it will be, wave 3 should be very impulsive, reaching at least a 1.618 target. Here’s how this scenario might play out. 
![Screen Shot 2018-08-01 at 2.14.55 PM.png](https://cdn.steemitimages.com/DQmXZ3zK4MKmNi3gXGy2CNnP1dnLsb4CbcC27Eo1qDhMzcW/Screen%20Shot%202018-08-01%20at%202.14.55%20PM.png)
### In today's video analysis, I discuss the possible trade setups I’m waiting for, key support and resistance zones and what to expect moving forward. If you’re not watching my videos, you’re only getting a small part of the story. 
## Video Analysis:
https://youtu.be/k5BkvCB2QcE
#### *If you’re viewing this on a site other than Steemit, and you don’t see the above video, navigate to Steemit or https://mentormarket.io/profile/@workin2005?aff_id=Workin2005 in order to watch.*
### BIAS:
**Short Term: Neutral**
**Longterm: Very Bullish**

**I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!**
### *Workin*
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