BTC - Wolfe Waves pattern
Updated
-CURRENT BTC AND MARKET SITUATION-
Hello everyone. Hope everyone is doing well. The market is still on a downtrend as expected. Although the previous BTC charts show that a potential drop to $20,000 is still possible, I personally don't think it will go that low as of now. I personally believe BTC will drop just a bit lower before bottoming out and I have for a while now. Both the Daily and the Weekly RSI show the December drop as a "lower low" while the price action shows a higher low. The Weekly MACD and the fact that BTC fell below the 20W SMA were also indications that BTC would head lower because of the massive amount of resistance above. BTC bulls got rejected at the 52K resistance and now here we are.
-WOLF WAVE ANALYSIS & EXPLANATION-
In Technical analysis, Wolfe Waves are price patterns consisting of 5 waves and can be either bullish or bearish. The channel created by points 1 and 2 must also contain points 3 and 4. It should be a parallel channel or very close to it.
Connecting points 1 and 4 creates a "take profit" target line. It is similar to Elliot Waves but is more simple than Elliot Wave Theory. There are a few simple rules explained in the picture below. Wolfe Waves can be found across all timeframes.
I will leave a link to the previous BTC chart analysis here.
If you like this idea/explanation please LIKE , FOLLOW, SHARE, and COMMENT if you'd like.
Thanks for reading. Take care.
*** As always, this is NOT financial advice. This is just an idea based off my experience. Always do your own research before investing or trading***
Hello everyone. Hope everyone is doing well. The market is still on a downtrend as expected. Although the previous BTC charts show that a potential drop to $20,000 is still possible, I personally don't think it will go that low as of now. I personally believe BTC will drop just a bit lower before bottoming out and I have for a while now. Both the Daily and the Weekly RSI show the December drop as a "lower low" while the price action shows a higher low. The Weekly MACD and the fact that BTC fell below the 20W SMA were also indications that BTC would head lower because of the massive amount of resistance above. BTC bulls got rejected at the 52K resistance and now here we are.
-WOLF WAVE ANALYSIS & EXPLANATION-
In Technical analysis, Wolfe Waves are price patterns consisting of 5 waves and can be either bullish or bearish. The channel created by points 1 and 2 must also contain points 3 and 4. It should be a parallel channel or very close to it.
Connecting points 1 and 4 creates a "take profit" target line. It is similar to Elliot Waves but is more simple than Elliot Wave Theory. There are a few simple rules explained in the picture below. Wolfe Waves can be found across all timeframes.
I will leave a link to the previous BTC chart analysis here.
If you like this idea/explanation please LIKE , FOLLOW, SHARE, and COMMENT if you'd like.
Thanks for reading. Take care.
*** As always, this is NOT financial advice. This is just an idea based off my experience. Always do your own research before investing or trading***
Note
So far everything looks good. I do think one more sharp drop could come soon as the 4HR MACD LOOKS DANGEROUS! With a strong bounce afterwards, this Idea could end up playing out well and hopefully a reversal in trend.Trade closed: target reached
Target has been reached here. Hopefully over the weekend we can see the market bottom out and a trend reversal coming soon. The 20K BTC scenario is still a possibility but I personally don't think it'll happen AS OF NOW. I think we are close to a macro bottom. I will make a new chart over the weekend as I gather more data and we'll go from there. Also ETH is close to reaching it's target from my last ETHUSD chart. More content coming soon
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