Litecoin Catching a Wave: Bitcoin Corrective Tsunami?
Updated
There is a pattern across all cryptos that began on Sept. 8, specifically the bearish pennant. What’s remarkable is that it’s occurring across all cryptos. This suggests to me that there is a move underway, which will affect all cryptos. I’ve already written about the Bitcoin tsunami, where I am expecting a correction down to the $3000-$3500 range, and possibly deeper if the conditions are right.
Bitcoin dictates the broad bearish or bullish trend of the entire crypto market. Within that broad structure, all other cryptos can have their own unique bearish or bullish trends or counter-trends. But they are comparatively much smaller movements within the broader picture. When there are large movements in Bitcoin, it brings everything with it.
Add to this the bearish pennant across all cryptos, the steep loss of momentum and volume, and we have a recipe for a deep market-wide correction. The targets I’m providing are for the Fibonacci Wave III retracement levels for Wave IV and Wave A extension levels of Wave C of the corrective ABC Elliott Wave. The deeper the Bticoin correction, the deeper these levels get activated for Litecoin.
Target I: Wave IV ≈ Fib. 0.382 x Wave I ($63)
Target II: Wave IV ≈ Fib. 0.5 x Wave I ($55)*
Target III: Wave C ≈ Fib. 1.0 x Wave A ($50)*
Target IV: Wave IV ≈ Fib. 0.618 x Wave I ($46)*
Target V: Wave C ≈ Fib. 1.236 x Wave A ($43)
Bitcoin dictates the broad bearish or bullish trend of the entire crypto market. Within that broad structure, all other cryptos can have their own unique bearish or bullish trends or counter-trends. But they are comparatively much smaller movements within the broader picture. When there are large movements in Bitcoin, it brings everything with it.
Add to this the bearish pennant across all cryptos, the steep loss of momentum and volume, and we have a recipe for a deep market-wide correction. The targets I’m providing are for the Fibonacci Wave III retracement levels for Wave IV and Wave A extension levels of Wave C of the corrective ABC Elliott Wave. The deeper the Bticoin correction, the deeper these levels get activated for Litecoin.
Target I: Wave IV ≈ Fib. 0.382 x Wave I ($63)
Target II: Wave IV ≈ Fib. 0.5 x Wave I ($55)*
Target III: Wave C ≈ Fib. 1.0 x Wave A ($50)*
Target IV: Wave IV ≈ Fib. 0.618 x Wave I ($46)*
Target V: Wave C ≈ Fib. 1.236 x Wave A ($43)
Comment
Target reached. However, comparing Elliott Waves across major crypto markets (some markets have clearer wave structure that can be used to help fill in the picture in sibling markets), suggests we may have one more leg to go in this wave C subleg. In these conditions, it's quite possible to break through 40, and in an extreme situation perhaps down to the mid 30's before stability returns. Be cautious, and don't jump in too deep too quick. Leave a little on the side in case prices go lower.Disclaimer
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