Anatomy of a Crypto Crash: How to Exit Bitcoin Gracefully
Bitcoin (BTCUSD) has all but invalidated the most bullish PURPLE setup that was discussed in our last update that had us looking at a nested 1-2,i-ii setup in both BTC and ETH. While officially, that would mean that we are in the GREEN alt pattern (not shown) which calls for an ending diagonal up for our final 5th wave, the RED alt pattern has become SIGNIFICANTLY more likely! This pattern calls for a continuation of the pullback that started after our April 2021 top all the way down into the 20k range!
The RED alt pattern sees the entire rally from summer into November of 2021 as having been an ABC corrective B-wave rally, or a fake-out. That would make the next movement a ferocious C-wave crash down. As C-waves are always 5-wave patterns, we would look for an impulsive 5-wave movement downwards as the 1st subwave of this larger C-wave. And it appears that we more or less have that in place now in BTC and ETH!
How to Make a Graceful Exit:
From our Nov 10th top to right now, we can easily count a 5-wave impulsive drop that seems to fit appropriate Fibonacci targets. If this really is Wave-1 down of our larger C-wave down, expect a big Wave-2 bounce up to nearly 60k before the final drop begins. This would take the form of a 3-wave zigzag up and offer us a "gentleman's exit" to unload any holdings in preparation for the ensuing crash. However, there is a small chance that we don't get the bounce; if we break below the 32.7k - 35.9k region directly, I'm exiting my positions! That may be an indication that the 3rd wave down of the larger C-wave has already begun!
In summary, don't panic, but please do have your exit strategy prepared in case things turn bearish! Know when you will sell or IF you plan to sell. If you plan to 'hodl', then commit to it! There is a small chance that we have a 5-wave impulse take us right up through our 68k ATH, which would immediately kill the RED pattern, but until we see that, stay on your toes! (I'll be publishing a similar analysis on Ethereum as well soon!)
Check out my explainer video on YT!
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
#bitcoin #cryptocurrency #blockchain #crypto
The RED alt pattern sees the entire rally from summer into November of 2021 as having been an ABC corrective B-wave rally, or a fake-out. That would make the next movement a ferocious C-wave crash down. As C-waves are always 5-wave patterns, we would look for an impulsive 5-wave movement downwards as the 1st subwave of this larger C-wave. And it appears that we more or less have that in place now in BTC and ETH!
How to Make a Graceful Exit:
From our Nov 10th top to right now, we can easily count a 5-wave impulsive drop that seems to fit appropriate Fibonacci targets. If this really is Wave-1 down of our larger C-wave down, expect a big Wave-2 bounce up to nearly 60k before the final drop begins. This would take the form of a 3-wave zigzag up and offer us a "gentleman's exit" to unload any holdings in preparation for the ensuing crash. However, there is a small chance that we don't get the bounce; if we break below the 32.7k - 35.9k region directly, I'm exiting my positions! That may be an indication that the 3rd wave down of the larger C-wave has already begun!
In summary, don't panic, but please do have your exit strategy prepared in case things turn bearish! Know when you will sell or IF you plan to sell. If you plan to 'hodl', then commit to it! There is a small chance that we have a 5-wave impulse take us right up through our 68k ATH, which would immediately kill the RED pattern, but until we see that, stay on your toes! (I'll be publishing a similar analysis on Ethereum as well soon!)
Check out my explainer video on YT!
I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
#bitcoin #cryptocurrency #blockchain #crypto
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