The drop looks like 5 waves, assuming its the first leg of a larger ABC. So expecting a 3-wave B wave bounce to 0.5Fib to 0.618Fib (blue box)
Reasons for assuming 5 waves
1) Wave2 deep while wave is sideways and shallow
2) Wave4 rejected at channel bottom
Assuming 5th wave done with the bullish divergence on the RSI (blue line)
Next steps:
The move to 43k+ should be in 3-waves for this chart idea to be valid
200DMA is expected to offer resistance
Reasons for assuming 5 waves
1) Wave2 deep while wave is sideways and shallow
2) Wave4 rejected at channel bottom
Assuming 5th wave done with the bullish divergence on the RSI (blue line)
Next steps:
The move to 43k+ should be in 3-waves for this chart idea to be valid
200DMA is expected to offer resistance
Trade closed: target reached:
6 weeks later, we got the move up to our blue box and hit 200DMA. I'm assuming this was an ABC, will keep an eye on the next week movement
Hope this helped
Hope this helped