Bitcoin to 3150 or lower
Now, as you probably remember in my last video on Bitcoin from a few days ago, I said that I was looking for Bitcoin to eventually head below these lows below the lows of 3,500 and eventually to head south and take out those loans and in fact they've done that now in the last couple of days. Bitcoin width below the lows of a few weeks ago and below 3,500 and they're currently trading about 3,360. And the reason why we were expecting bitcoin to head lower is because of three reasons. Firstly, as you will see here on this chart, this is my elliott wave chart of bitcoin and you will see our Elliott wave indicator or lt intelligent Elliott waves is showing to us that we're going to likely wave three. And here's something else I want to show you. If we switch this chart to a weekly timeframe, this is where it gets very interesting. So the second thing that we need to pay attention to is the fact that we're not too far away.
We're actually getting very close now to the 200 weekly average. That's the Green Line you see on my chart right there. That $200 weekly average usually gets tested by the market's quite often and it usually forms as a level of support on the markets. Often mark has come down to a 200 weekly average and they usually bounce from those levels. Of course marcus can also exceed the 200 we can average as well, but on the whole they usually tested or indeed a bounce from it and it often act as a level of support and that $200 weekly average currently stands at 3000, 160. The next level of support for bitcoin. By the way, we're not saying that's the bottom for Bitcoin, we're just saying that's the next likely downside target for bitcoin potentially by the end of December or perhaps a bit sooner. But here's. Here's something else I want to show you.
This is quite interesting. Notice on this week a timeframe, we have a signal that should not be ignored. That's the pulse signal on the weekly charts. So if I just zoom in here, you will see that as a matter of fact, we are now in the third week, the third bar of this pulse signal that fired to the downside when these red dots turned to blue dots. Now usually weekly pulses tend to be very strong and because the average pulse lasts about eight to 10 bars or eight to 10 weeks, in this case, we're only in the third bar, the third week of this palace, which means we could have another five, perhaps five to seven weeks of potential pulse momentum, and that would take us until the middle of January. Let me show you this. For example, if I just go back on a daily timeframe chart, you will see the pulse that fired on the daily timeframe here.
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This pulse, the fired on the 14th of November, that lasted about, about, as you can see here, about 15 bars or 15 days, and that pushed bitcoin down significantly lower. Uh, let me show you this. If we go on the weekly timeframe chart, um, the last, let me show you this, the pulse that lasted significantly. Let me show you, this is back in 2016. In 2016, you will notice something very interesting. There was a pulse that fired off here in November as a matter of fact, November of 2016, uh, right here, as you can see, and this managed to push bitcoin up significantly higher. It pushed it from about $700 all the way as you can see here, a significantly higher. And this pulse lasted about almost 20 bars, so that's quite interesting. But the bottom line is this, just go back to that pulse that's forming right now on the weekly timeframe.
So bottom line is this, we're getting closer to the 200 simple moving average on the weekly timeframe and we've got a pulse that's fired to the downside on the weekly time frame as well. Let me make this very clear. We're not saying that bitcoin is going to continue dropping all the way to the end of January or the middle of January. That's not what we're saying. All we're saying is the momentum, the momentum on bitcoin at the moment, it's going to remain bearish potentially until the middle of January. And that means between now and January, it could do a lot of things, but conclude, for example, have a bounce. You could have a pullback. It doesn't necessarily have to move in a straight line. For now, all I'm interested in is when bitcoin eventually test this 200 weekly average, how is it going to have to react to it? What is going to be the likely reaction will hold it or will it actually exceeded and go below it?
That's going to be the next important question for bitcoin. Alright guys, thanks very much indeed. I hope this video's health and it has.
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