As BTC continues to decline, it becomes possible to interpret the current structure as an expanding flat. With this scenario in mind, we can derive 3 trading ideas.
Elliott:
The expanding flat becomes likely when BTC prints a lower pivot point, ideally below 58k. We can then assume that wave (c) in blue is complete, with five sub-waves (in green). Possible targets are at the .618 and 1 fib extension of wave I (green price labels = buy ideas).
Geometry:
Price continues to respond to both pitchforks. We can look for supports along the larger pitchfork. The top of the blue box is the .382 retracement, the typical level for a wave 4 correction.
Entry ideas:
57780: The .75 fib of the larger pitchfork and the .618 fib of wave i.
55380: The lower band of the large pitchfork and the .5 Fib of the smaller one. Also the 1 Fib extension of wave i (in green).
52200: The 1.618 fib extension of wave i and the lower band of the small pitchfork.
A move above 62k would indicate that the correction is complete, and we may add to long exposure.
The idea is to carefully scale in as wave (c) unfolds to the downside. The intention is to trade the next wave up, in case the count is correct.
(Pitchforks are based on the bar chart h/l points.)
Elliott:
The expanding flat becomes likely when BTC prints a lower pivot point, ideally below 58k. We can then assume that wave (c) in blue is complete, with five sub-waves (in green). Possible targets are at the .618 and 1 fib extension of wave I (green price labels = buy ideas).
Geometry:
Price continues to respond to both pitchforks. We can look for supports along the larger pitchfork. The top of the blue box is the .382 retracement, the typical level for a wave 4 correction.
Entry ideas:
57780: The .75 fib of the larger pitchfork and the .618 fib of wave i.
55380: The lower band of the large pitchfork and the .5 Fib of the smaller one. Also the 1 Fib extension of wave i (in green).
52200: The 1.618 fib extension of wave i and the lower band of the small pitchfork.
A move above 62k would indicate that the correction is complete, and we may add to long exposure.
The idea is to carefully scale in as wave (c) unfolds to the downside. The intention is to trade the next wave up, in case the count is correct.
(Pitchforks are based on the bar chart h/l points.)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.