Updated

Potential BTC Impulse Wave Before Further Correction

We anticipated both wedges to break down and now I believe BTC is now completing wave 1 of an impulse wave. It dropped out of the last wedge for what felt like roughly half a second and headed right back up into the impulse structure that I have been anticipating. It is a bit early and I won't have an confirmation of the impulse nor a super accurate count until the close of wave 2...but here is my knee-jerk count based off of current wave 1 length. I am very much on the conservative side of risk/reward so I will trade once the confirmation of the close of 2 comes through. I don't pull in the gains that I would if I always guessed the start of wave 1, but my losing trades are few and far between. Risk management and setting rules around risk/reward is what allows me to make this my gig. There are a lot of other ways to play this game but this is style that works best for goals and personality.

Note

Here is my updated count for BTC after the close of 2. I believe that the 5th wave could potentially end at the descending channel line coming off of the top of the previous head and shoulder line. If we do not have a 4th wave bounce up to 5, this would be considered an ABC correction.

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Comment: ABC correction ended up being the right call. Now we can see the benefit to getting in at the close of 2 (or B in this case). Regardless of whether a structure is an ABC correction or an impulse wave you are safe with a wave 2 (b) confirmed close.

Note

Another impulse wave setting up to the tops of channel. Short-term bullish, medium term bearish (bounce off top of channel).

MDuth

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MDuth