POE 5th Wave
Updated
BINANCE:POEBTC is showing strength with a 5th wave close to completing. Let’s look at RSI and fib levels to determine where Wave 5 could end up.
RSI tends to fluctuate between 40 and 90 in a bull market (uptrend) with the 40-50 zones acting as support. This has held since the uptrend started around 3/18. It has not dipped below 40 except for a dip on April 1st. This dip represented Wave 2, which retraced .786. This affected wave 4 retracement, which ended up at about .38 and adheres to basic Elliott Wave behavior. RSI also shows reverse bullish divergence, which would be an indicator that the primary trend will continue.
All subwave 5 patterns have shown to be 1.618 of wave 3 and indicates a 5th wave extension. We can use that logic to apply it to Wave 5 of the primary pattern to determine preferred future prices. Targets are at the following levels:
RSI tends to fluctuate between 40 and 90 in a bull market (uptrend) with the 40-50 zones acting as support. This has held since the uptrend started around 3/18. It has not dipped below 40 except for a dip on April 1st. This dip represented Wave 2, which retraced .786. This affected wave 4 retracement, which ended up at about .38 and adheres to basic Elliott Wave behavior. RSI also shows reverse bullish divergence, which would be an indicator that the primary trend will continue.
All subwave 5 patterns have shown to be 1.618 of wave 3 and indicates a 5th wave extension. We can use that logic to apply it to Wave 5 of the primary pattern to determine preferred future prices. Targets are at the following levels:
- 690 for 1:1 (conservative target)
- 776 for 1:1.618 (preferred - would be congruent to 5th subwaves)
- 915 for 1:2.618 (stretch target)
Note
Gaining some nice steam over the past few days. We're holding at a resistance level at 660. If we get a decisive close over 660 we should hit the 690 target. Looking at the 1 hour chart, RSI is showing a nice upward channel that is following the price action. I don't see any divergences.
MACD on the 1 hour is also telling the same story. Signal crossed in the bearish direction about a day ago but it looks like it's gaining steam at the moment and may cross in the bullish direction. At the moment, MACD is in bull territory.
Volume is trailing a bit, however, this looks like regular consolidation. Nothing out of the ordinary yet. However, I would caution that there is a doji candle forming on the 1 day chart, which could signal a short term retracement.
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