In a recent video on the Cheeky Crypto channel, Nick provides a technical analysis of Bitcoin paired with USDT on the 1-hour, daily, weekly, and CME gap charts.
On the 1-hour chart, Nick suggests that Bitcoin is in a wave four positioning, with a target range of 35,789 to 36,630. He presents two potential scenarios for Bitcoin’s price movement:
- Overextension: Bitcoin could overshoot the target range and reach higher levels, such as $38,000 or $40,000.
- Triangle Pattern: Bitcoin could form a triangle pattern in wave four, which would indicate a continuation of the bullish trend.
Nick explains that triangle patterns are common in wave four movements, and they can be either symmetrical or asymmetrical. Symmetrical triangle patterns are typically bullish, while asymmetrical triangle patterns can be either bullish or bearish.
Nick discusses the potential for a short-term correction in Bitcoin’s price, but he does not expect it to go lower than $33,200. He shares his trading strategy, which involves using exchanges like OKX, Bybit, and BitG. He suggests setting a tight stop-loss and targeting the 1.236 Fibonacci level.
Daily Chart Analysis
On the daily chart, Nick suggests that Bitcoin is due for a healthy correction to around $20,000 before a bullish market returns. He explains that this is based on the Elliott Wave theory, which suggests that wave five of a bullish trend is typically preceded by a deep correction.
Nick discusses the volume profile, pointing out the lack of natural volume in recent price movements. He suggests that this indicates that the current rally is not sustainable and that a correction is likely.
On the weekly chart, Nick expresses a bearish sentiment based on the overbought conditions and weak volumes. He suggests that Bitcoin is likely to head towards the $20,000 CME gap to fill it.
CME gaps are areas on the price chart where there was no trading activity. These gaps can be caused by a variety of factors, such as weekends, holidays, or other events. Nick believes that Bitcoin is likely to head towards the $20,000 CME gap to fill it.
Nick wraps up the video by asking for viewers’ thoughts and encouraging likes, subscriptions, and notifications.