My updated bearish Elliott principle based scenario.
Updated
My count had to be updated...
(I have changed the violet wave count adapting it to the most recent price action).
I believe this recent shallow correction was just a lesser degree wave 4 of the 5th wave (violet count) of wave 3 (yellow count).
Fib extensions seem to confirm that we have reached the end of a higher degree wave 3 (blue) - reaching the classical level of the golden ratio 1.618.
Typical retracement would be to the level of the lesser degree (yellow) wave 4 (big white circle) which is also the 0.382 Fib retracement level of wave 3 (blue). It could of course go lower.
It could also find support on the 21 W EMA - RED (the usual suspect for BTC dips) - here I have it as a 147 Daily EMA (21x7=147).
Bearish divergence on the RSI...
I thik it makes a lot of sense, but keep in mind that this is BTC and I´m a noob.
Both factors that aren´t in this scenario´s favour.
It could just continue moving upwards leaving me crying on the sidelines.
(I have changed the violet wave count adapting it to the most recent price action).
I believe this recent shallow correction was just a lesser degree wave 4 of the 5th wave (violet count) of wave 3 (yellow count).
Fib extensions seem to confirm that we have reached the end of a higher degree wave 3 (blue) - reaching the classical level of the golden ratio 1.618.
Typical retracement would be to the level of the lesser degree (yellow) wave 4 (big white circle) which is also the 0.382 Fib retracement level of wave 3 (blue). It could of course go lower.
It could also find support on the 21 W EMA - RED (the usual suspect for BTC dips) - here I have it as a 147 Daily EMA (21x7=147).
Bearish divergence on the RSI...
I thik it makes a lot of sense, but keep in mind that this is BTC and I´m a noob.
Both factors that aren´t in this scenario´s favour.
It could just continue moving upwards leaving me crying on the sidelines.
Trade closed: target reached
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