The recent bounce in Bitcoin (BTC) on BitMEX seems to be positive for the Elliott Wave structure that we have been patiently tracking.
The most important point in the chart is at $3,900 in XBT (Figure 1). That level is the 62 percent retracement of the early morning up move in Bitcoin (BTC). If there was another dip to that level, and it held as support, you could still hope for a much bigger up move.
In order to get excited about Bitcoin (BTC) upside, it would be good if Ethereum (ETH) on BitMEX could get out of its own way and burst above a trend line $137 (Figure 2).
Bottom Line: More range trading is OK. It’s a little boring, but the range isn’t breaking any bullish structures. Traders and investors can stay patient and see if the crypto train can leave the station.