On this chart, i have identified an ending diagonal structure similar to the ending diagonal we had before the crash to 30k. You can see i have identified 1-2-3-4-5 waves leading up with 64k with wave 5 being an ending diagonal . Following the ending diagonal , there were 5 waves down which leads us to believe that was wave A of and ABC correction. Wave B is usually 3 waves, you can see here i have it marked as ABC , with wave C being the ending diagonal we are currently in. Following this should be 1-2-3-4-5 waves down making up wave C. Wave C is usually a 1:1 extension of wave A atleast but can go down to the 1. 618 retracement or beyond. Below i have a passage that i found online exploaining the characteristics of an ABC correction. Have a read of it yourself and see what it supports what i have displayed on the charts.

Wave A, B, and C

Wave A: Corrections are typically harder to identify than impulse moves. In wave A of a bear market, the fundamental news is usually still positive. Most analysts see the drop as a correction in a still-active bull market. Some technical indicators that accompany wave A include increased volume , rising implied volatility in the options markets and possibly a turn higher in open interest in related futures markets

Wave B: Prices reverse higher, which many see as a resumption of the now long-gone bull market. Those familiar with classical technical analysis may see the peak as the right shoulder of a head and shoulders reversal pattern. The volume during wave B should be lower than in wave A. By this point, fundamentals are probably no longer improving, but they most likely have not yet turned negative

Wave C: Prices move impulsively lower in five waves. Volume picks up, and by the third leg of wave C, almost everyone realizes that a bear market is firmly entrenched. Wave C is typically at least as large as wave A and often extends to 1.618 times wave A or beyond

You can see on the chart i have here that there was a spike in volume during wave 3 of wave A and then there has been declining volume during the rise of wave B, which matches perfectly with what this passage describes as an ABC correction. During wave 3 of Wave C is when people will realize we are in a bear market and we should get a spike in volume then.

Well that is my complete elliot wave analysis on bitcoin at the moment, i hope you guys enjoyed it.

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