Bitcoin: Everyone's Favorite Ponzi Scheme
Since reaching a climax at $4900 USD, our friend Bitcoin has taken a turn for the worse.
Postulates:
- According to EW, BTC's parabolic uprise could only be followed by a corrective ABC wave.
- ABC waves are made up of a 5 wave down, followed by a 3 wave up followed by another 5 wave down.
What you are looking at:
- Following BTC's correction, it becomes strikingly obvious that a pattern occurred.
- Counting the waves yields only 2 possibilities:
1- The ABC structure has been completed. This is unlikely due to the size and impulsiveness of the correction.
2- the 5th leg of the A wave is what will occur now. This is likely to happen due to heavy MACD divergence which only becomes apparent on the 30-45min timeframe.
What we can expect:
- As I mentioned there are only 2 moves bitcoin could make from here. ONE possibility is for it to commence the 5h leg down of wave A, the other is
for btc to move into a 3rd up wave signaling a reversal. Buy signals would be once it breaks the Major Downtrend it is currently in, I.E Pink trend line,
where as good sell signal would come once it breaks its current downward channel into a more impulsive downmove.
Target 1- $3300
Target 2 - $3000
Target 3 - $2900
Postulates:
- According to EW, BTC's parabolic uprise could only be followed by a corrective ABC wave.
- ABC waves are made up of a 5 wave down, followed by a 3 wave up followed by another 5 wave down.
What you are looking at:
- Following BTC's correction, it becomes strikingly obvious that a pattern occurred.
- Counting the waves yields only 2 possibilities:
1- The ABC structure has been completed. This is unlikely due to the size and impulsiveness of the correction.
2- the 5th leg of the A wave is what will occur now. This is likely to happen due to heavy MACD divergence which only becomes apparent on the 30-45min timeframe.
What we can expect:
- As I mentioned there are only 2 moves bitcoin could make from here. ONE possibility is for it to commence the 5h leg down of wave A, the other is
for btc to move into a 3rd up wave signaling a reversal. Buy signals would be once it breaks the Major Downtrend it is currently in, I.E Pink trend line,
where as good sell signal would come once it breaks its current downward channel into a more impulsive downmove.
Target 1- $3300
Target 2 - $3000
Target 3 - $2900
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