BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
As published in the previous post BTC is undergoing a correction of the 3rd EW on a weekly scale. If we zoom in we can see the patterns that are unfolding. I have reason to believe we are on the verge to start our first leg up. As you can see we started the correction with a clear zig zag pattern that brought us down to the 0.236 level of the 3rd wave which was the first target for the correction considering the extension of wave 3. BTC then entered a chopping period of accumulation which have formed an expanding triangle classic of wave 4 corrections. if we zoom inside the triangle we can clearly see 2 abc pattern with the last wave C of the expanding triangle being a 5 wave. This signal the end of the triangle and the trend should resume up. However, we will have the confirmation when BTC will break above 42 k as corrections can be a lengthy and complex process. Another reason to think that we are about to shoot up once again is the strong bullish divergence that has been forming in every time frame from daily to the 4 h with also the stochastic oversold in the weekly and daily. the bullish divergence is in 3 different oscillators the OBV, the RSI , and money flow . Fasten your seatbelt, I hope you are ready

Comments