Break on through, to the other side! Super Breakout!
Updated
Well that was an awesome breakout of that resistance zone at 7800-7900! It held us down for all the previous 24 hours at least, and without even much of a retrace, bulls took hold and rammed it through.
I've adjusted my waves slightly since I was originally expecting a retrace back to the 6900-7000 resistance zone. (I left my original wave lines on the chart for now.) But that retrace didn't happen, so I accelerated the timeline of wave 3 and wave 4 and have currently assumed wave 5 was completed with this last bull run. My original wave 5 target is still shown in the Orange ellipse for my own benefit.
But what's even more awesome is the breakthrough of the purple down trend line that connected the last 2 highs from March 5 and May 5. There have been a couple retests of that trend line already in the last couple hours. At some point there needs to be a retrace, which I have attempted to forecast as one option with the ABC correction waves. This will bring us back under the purple trend line, at which point the bears will wake up and say "SEE! SEE! WE ARE STILL IN THE DOWN TREND!" And I will continue to laugh at them.
But with that said, this is obviously an opportunity to examine the potential for a short as we enter this retrace correction wave. Be careful with that and put in some tight STOPS. I'm staying long with my current positions, and may strengthen that position if we see a healthy retrace back to the 7000 range. I'll wait and see for that one.
Have a Great Day!
I've adjusted my waves slightly since I was originally expecting a retrace back to the 6900-7000 resistance zone. (I left my original wave lines on the chart for now.) But that retrace didn't happen, so I accelerated the timeline of wave 3 and wave 4 and have currently assumed wave 5 was completed with this last bull run. My original wave 5 target is still shown in the Orange ellipse for my own benefit.
But what's even more awesome is the breakthrough of the purple down trend line that connected the last 2 highs from March 5 and May 5. There have been a couple retests of that trend line already in the last couple hours. At some point there needs to be a retrace, which I have attempted to forecast as one option with the ABC correction waves. This will bring us back under the purple trend line, at which point the bears will wake up and say "SEE! SEE! WE ARE STILL IN THE DOWN TREND!" And I will continue to laugh at them.
But with that said, this is obviously an opportunity to examine the potential for a short as we enter this retrace correction wave. Be careful with that and put in some tight STOPS. I'm staying long with my current positions, and may strengthen that position if we see a healthy retrace back to the 7000 range. I'll wait and see for that one.
Have a Great Day!
Note
I think it is safe to say that we are firmly in the A wave of the abc correction. That requires that the 5th wave of the uptrend impulse wave was completed as indicated on the chart. It seems that we are following along my previous abc forecast fairly well. This could be a long protracted correction, which will be great for the bulls. Imagine if this correction goes all the way back to 6900! So much new money would show up to buy BTC cheap! And I will certainly add to my position if we get in the 6900-7100 range. But that could take a few more weeks.Until then, hold tight, be patient, and don't worry. This is a healthy Elliot Wave Correction sequence and will set us up for a massive upswing.
Note
If my wave counts are correct, we are finishing up subwave 3 of the a-correction wave. I've adjusted the target of "a" down further since this wave 3 extended further than I predicted. But either way, this is a good looking correction wave. We should bounce back up to the resistance rectangle 78XX for subwave 4 before hitting the 7250 target of wave "a". Than the "b" wave with 3 subwaves will take us back up to this resistance at 78xx before the final "c" correction wave (made up of 5 subwaves that could take us down to he 6900-7000 target. This wave structure is setting up almost perfectly according to theory, with the exception of the steep squeezes and quick corrections that we see. But that is part of the volatility of the crypto market. Despite the appearance of whale manipulation and other unregulated variances, the wave theory continues to provide good insight into the market behavior and predicts trend changes just like traditional markets. Happy Trading!
Have a Great Day!
Note
Note
Over the weekend we continued the retrace down to just above the .618 Fib Levels as seen below. 3 times now the bears have touched my red resistance rectangle and have not been able to break through it. This support level is strong and holding well so far. Although the longer the price pressure sits right above this zone, the weaker it will get. Soon, the bulls need to show up and make a move to get off this support. Otherwise, it will fail and BTC could drop all the way to 62XX before the next real support level. Astonishingly, this retrace is going exactly as I predicted, albeit a bit quicker than my abc waves have shown, but the retrace has stalled at all the correct positions. And I believe in these wave counts that I have already entered a BUY at the current level in anticipation that price will rebound very soon. THIS ISN"T ADVICE for you to do the same. Your risk/reward and positions and strategy are your own.
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