Our weekly update from CFT – August 6th 2020 (enclosed video)
In front of us, we have Bitcoin. We have shown the green five waves up. Last week when we updated (at our Telegram channel) we were doing a little triangle up here to the upside and we talked about there could be a little bit more. We did get the BTC run to $12,100 and then we got a quick drastic selloff to down below the $10,600 support we had mentioned. We think that was probably a wave A down, then we rallied back up here to $11,787 for probably a B up. So, we are looking for another break below $10,550 and that could be another ABC for another 1-2 with an explosion to the upside coming. But also, if we don’t get support down here, then we could be looking for this deeper ABC down for a deeper wave 2. So, we will be on the lookout for this next selloff and see if it finds support. Our indicators are starting to get a little bit friendly, so we are anxious to see this next little pullback in the next few days.
U.S. stocks have still continued a little bit higher here….against our original thinking. We don’t think it changes anything, we still think we are late stages in the rally, we think we will still have a pullback. So, we are still a little bit short there, nothing drastic, but a little bit.
We have got the U.S. dollar we talked about trying to make a low, it has stayed down here, a little lower than last week, but not much. Still we think making a low. And gold and silver did extend a little higher on the dollar not reversing as of yet. We are still short a little bit on gold and silver, and looking for a reversal there as well.
So once again quickly on Bitcoin, this could be the wave 1 up that we have monitored….there is also a way of counting this that we had a 1-2 here, and this is another 1-2. That count would be extremely aggressive, but we are on the lookout for that. So, we’re looking for a short term top here, and we will see how the correction looks on the pullback.