I feel obliged to try to explain the recent sudden downwards move that I admit caught me off guard when I was expecting a smaller correction from what appeared to be wave 1 of 3.
I was unable to decide previously if the most recent impulse was a truncated wave 5 of the larger green wave 1, or if it was wave 1 of the larger green wave 3.
If it was wave 1 of green wave 3, then the correction from that seems too large (although it would be acceptable but barely).
There is another way to describe the current correction that eliminates both the above uncertainties, and that is as a flat ABC correction to form green wave 2. A flat correction is usually of a smaller degree than a zigzag (which is typically 0.5, 0.618, 0.786 of wave 1), and this correction at around 0.382 for a wave 1 is on the small side which would fit perfectly with a flat correction type.
If this is validated, then it means we are about to (or have just started) our wave 3 of the larger (green) impulse.
I am still long on BTCUSD.
I was unable to decide previously if the most recent impulse was a truncated wave 5 of the larger green wave 1, or if it was wave 1 of the larger green wave 3.
If it was wave 1 of green wave 3, then the correction from that seems too large (although it would be acceptable but barely).
There is another way to describe the current correction that eliminates both the above uncertainties, and that is as a flat ABC correction to form green wave 2. A flat correction is usually of a smaller degree than a zigzag (which is typically 0.5, 0.618, 0.786 of wave 1), and this correction at around 0.382 for a wave 1 is on the small side which would fit perfectly with a flat correction type.
If this is validated, then it means we are about to (or have just started) our wave 3 of the larger (green) impulse.
I am still long on BTCUSD.