Hi friends, I haven't posted anything for a long time since I was packed up with a lot of work. So looking at Bitcoin , it was an inevitable decline. If we take a look at BTC price action since the 2020 March selloff, we started to build a huge Elliot Wave Pattern. At Wave 5 we can see that we are ending with a rising wedge , which shows that Correction Waves A-B-C are expected. After we reach the rising wedge target, which is also the Wave A of the correction waves, we noticed that there is a huge H&S pattern building up. I am saying huge because the broken neckline will trigger a fall of 19,000$ - 20,000$. So, now we can see that both the rising wedge and the H&S patterns hit their targets and the correction wave C stopped at 123.6% of fibonacci. However, since the price flash dropped close to 161.8% of wave A, we could have the scenario where if Correction Wave C = 161.8% of Correction Wave A, it may be a Wave 3 of a 5 wave impulse. So, be careful and wait for a confirmation before buying the dip as the upward move might be wave 4 of the 5 wave impulse. If we break 42,000$ then we will have the bullish scenario leading us to the 58,000$ and most probably making a new ATH . But before that we have all the reasons to expect a further drop with small stop at the CME gaps, which will help building the micro waves inside the big picture.
Be safe, don't lose money!
Be safe, don't lose money!
Comment:
Looking at the 1H chart, we can clearly see that Bitcoin has been building a huge Adam & Eve Double Bottom Pattern which give a target of 52,000$. Also, looking closely on the right side of the Adam & Eve Pattern, we can spot that an inverse H&S pattern has been building, if the neckline is broken the target of the H&S pattern would be 45,000$. If this happens and we break 42,000$ resistance and hold above it, we could start aiming higher levels.
