BTCUSD Update On Possibilities For Bottom
We have only had 3 waves down. There is positive divergence on Awesome Osc, MACD (not shown) also crossing up, or nearly so.
1. Red: The bottom is in and we have a (1)/(2) up. The depth of wave (2) was deeper than preferred, but still within Elliott Rules. I would want to see above $4250 to rule out the next options. If this is the (1)/(2) scenario, then wave (3) should prove this and soon.
2. Blue: We are in wave 5 circle, only just now completing the first wave down in an Ending Diagonal expecting a slight new low past wave 3 circle.
3. Gray: Same Ending Diagonal but different count within.
You will note the orange line, now above price action. This is BTCUSDSHORTS. As you can see, the masses are nearly always wrong at extremes. We are nearing an extreme number of short positions...extreme bearish sentiment, from which, under Elliott, you expect the opposite and take the opposite trade/position.
1. Red: The bottom is in and we have a (1)/(2) up. The depth of wave (2) was deeper than preferred, but still within Elliott Rules. I would want to see above $4250 to rule out the next options. If this is the (1)/(2) scenario, then wave (3) should prove this and soon.
2. Blue: We are in wave 5 circle, only just now completing the first wave down in an Ending Diagonal expecting a slight new low past wave 3 circle.
3. Gray: Same Ending Diagonal but different count within.
You will note the orange line, now above price action. This is BTCUSDSHORTS. As you can see, the masses are nearly always wrong at extremes. We are nearing an extreme number of short positions...extreme bearish sentiment, from which, under Elliott, you expect the opposite and take the opposite trade/position.
Note
Bears are all-in possible completing wave 3.Note
That MAY have completed the entire Ending Diagonal...time will tell. This could hurt if you are on the wrong side....short. We could still require waves 4 and 5 but everything is in place to call this ED complete.Note
Wave 3 appears to be in...one move up/down, with one more new low, should complete this.Note
Ending Diagonal is out but overall, not much has changed, still expecting a bottom soon. BTCUSDSHORTS are even higher, the HIGHEST level ever. This is not the time to be a bear.
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Disclaimer
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.