Bitcoin is setting up an Inverse Head & Shoulders pattern, a launchpad of a rally

I count the spike to the low of 3,462 into my green target box on 22 Jan 2019 as the low of the corrective wave ( b ) of ( i ). That implied we have started a rally in wave ( c ) of ( i ) up.  That wave ( c ) should be subdivided into five waves of smaller degree.  We might have completed wave i up with a spike up to 3,750 on 26 Jan 2019. 

We can get a great long setup if price gets back to 3,600-3,550. In terms of a wave analysis that would be wave ii down. What is important, such a drop would draw a conventional trading pattern – Inverse Head and Shoulders which is a great long setup.

 

BTC - 30 min chart updated on 26 January 2019

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