I've been trying to put an elliot count on this correction, and I think I might have figured it out. I did a count on XEM earlier today which it feels like its on the same course as BTC. However, I think XEM will be more profitable than BTC in this upcoming run. You can see my thoughts on XEM on my previous post. Anyways, I think BTC is completing the 2nd wave of the C wave of the correction. On the B wave there is a double top with the RSI showing bearish divergence to hint the C wave is to come. I know a lot is going on in this chart so I will try to make it a little bit clearer to understand. Placing a FIB retracement on the from the top of the B wave to the bottom of the wave 1 shows that it is hitting the .618-.65 area of resistance which you can have a clearer picture right here:
I then placed an FIB extension to see where a likely path of the next waves would likely hit. Which is shown here. If the 3rd wave has a extension of 1 then the 5th will go to the 1.618 extension shown down below.
Putting this all together you can see that the FIB retracement confluence area for the last big swing low to swing high is at the .618-.65 area of $3624-$3661.
As you can see, putting all of this together BTC should drop to around $3624-$3661 to complete wave C. The reasoning for that bottom is there is so much confluence in that area it should hold. Also I think the RSI should show signs of bullish divergence by then on smaller time frames. Good luck and lets hope BTC pumps next week to validate that inverted H&S!
I then placed an FIB extension to see where a likely path of the next waves would likely hit. Which is shown here. If the 3rd wave has a extension of 1 then the 5th will go to the 1.618 extension shown down below.
Putting this all together you can see that the FIB retracement confluence area for the last big swing low to swing high is at the .618-.65 area of $3624-$3661.
As you can see, putting all of this together BTC should drop to around $3624-$3661 to complete wave C. The reasoning for that bottom is there is so much confluence in that area it should hold. Also I think the RSI should show signs of bullish divergence by then on smaller time frames. Good luck and lets hope BTC pumps next week to validate that inverted H&S!
Note
counts invalidatedTrade closed: stop reached
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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.