[IMAGE: https://steemitimages.com/DQmVMGqsvihsvnog2RxfeunZyiTv9MerKdu35rYJ7e8gQSg/bitcoin.png]

Looking at the 30 min chart, we can see what appears to be a bullish pennant.

[IMAGE: https://steemitimages.com/DQmYrQnbnrzgz1fQ1yx6Qvcet1NocpYdLE2RjH7BoX3sWye/Screen%20Shot%202018-05-04%20at%201.01.18%20PM.png]

This usually forms during the correction that follows 5 completed waves. Given the pattern is more one of consolidation than straight up or down movement, I believe it's most likely we're in an ABCDE type correction. If that's true, it may play out like this:

[IMAGE: https://steemitimages.com/DQmUzLH2dxNeWUijzDpvDDPtu4XNwYK9LNSYK3EAc8dHiKX/Screen%20Shot%202018-05-04%20at%201.12.11%20PM.png]

It is possible that this is an ABC correction. This is not my primary count, but I can't take it off the table. If this scenario is true, it may play out like this:

[IMAGE: https://steemitimages.com/DQmW3Y7rPGgMjNAGdKds8HSauexcs2XLagSiyb6GNaz31Hw/Screen%20Shot%202018-05-04%20at%201.56.40%20PM.png]

Looking at the 30 min RSI, we can see a strong support line has formed at 43.3. If this support holds, I expect scenario 1 to remain in play. If it breaks, expect scenario 2.

[IMAGE: https://steemitimages.com/DQmfKM8hEfrxg2LDGboxDZAx8HcEL6f614RUEZ3F9bTQu5x/Screen%20Shot%202018-05-04%20at%201.24.36%20PM.png]

The 1 hour RSI also has an ascending support line that has formed. If this holds, scenario 1 is most likely to complete.

[IMAGE: https://steemitimages.com/DQmazv8YNN5sskpaeV4E1Mi1mCQfSg7XBDSBYQM5eawaii9/Screen%20Shot%202018-05-04%20at%201.32.19%20PM.png]

Looking at the bigger picture, even if bitcoin does drop as outlined in scenario 2, I believe a strong impulse wave up would follow. The 8 day, 21 day and 55 day EMA's all indicate an over all uptrend will continue.

[IMAGE: https://steemitimages.com/DQmRwjNFykDHQAPccEFvQqCi6FFyB83N5Mz5H5xXLzDE2rV/Screen%20Shot%202018-05-04%20at%201.36.14%20PM.png]

If you aren't familiar with how to use EMA indicators, you can reference my post on the topic here: https://steemit.com/cryptocurrency/@workin2005/simple-effective-strategy-to-buying-and-selling-market-trends

Looking at the 4 hour MACD, we can see the wedge that I've pointed out these past 2 weeks has still not been broken. The histogram continues to be squeezed tighter and tighter. This may eventually lead to a major breakout as we get closer to the apex of the wedge.

[IMAGE: https://steemitimages.com/DQmanXhJcmB86RQsDQUrPPS5CVb4dszKrgwGCjwSSfB6DWr/Screen%20Shot%202018-05-04%20at%201.32.59%20PM.png]

Finally, we can see the bull flag I pointed out yesterday on the daily RSI is still in play. This is another sign of strength.

[IMAGE: https://steemitimages.com/DQmWt3RkvxvrxEYyjUwC96LbqJZWT4i4pHYHyaeL7mj4WH3/Screen%20Shot%202018-05-04%20at%201.20.59%20PM.png]

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. Thanks for stopping by!

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[IMAGE: https://steemitimages.com/DQmRhDtjokAZnGKi4QwheqksKTFo6m4fsjMYsNNrsitC1xk/upvote.gif]

Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.

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