BTCETH Going down .. but down which leg?
Updated
Everybody is charting down. Everything is pointing down. The thing that is not so clear (to me) is where are we in the EW count and down which leg are we going to move.
Red EW count starts at 15th July, with W1 finishing 2nd September and W3 finishing at ATH 8th November. After W3 up movement, we are currently at W4 and here is the problem. Looking at Fibonacci levels W4 has touched lowest possible point 12th November. It went through 0.382 retracement and touched 0.5. The problem is, W4 cannot go further down, and certainly, can’t go to 0.618 level. This would break rules of EW count, making this count invalid.
It must be understood that EW count is just model we are imposing to better understand and speculate about future price movements. By no means does the price follow EW inherently.
If price continues to go down, this is not part of EW count starting at 15th July, this is major retracement of W1 which encompasses whole BTC epoch from star till now. It this is in play, then situation could move to very low points.
Red EW count starts at 15th July, with W1 finishing 2nd September and W3 finishing at ATH 8th November. After W3 up movement, we are currently at W4 and here is the problem. Looking at Fibonacci levels W4 has touched lowest possible point 12th November. It went through 0.382 retracement and touched 0.5. The problem is, W4 cannot go further down, and certainly, can’t go to 0.618 level. This would break rules of EW count, making this count invalid.
It must be understood that EW count is just model we are imposing to better understand and speculate about future price movements. By no means does the price follow EW inherently.
If price continues to go down, this is not part of EW count starting at 15th July, this is major retracement of W1 which encompasses whole BTC epoch from star till now. It this is in play, then situation could move to very low points.
Comment
Title is not correct, it should be BTCEUR
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