Hello Everyone.
Many of you are aware that I am a fan of Elliott Wave Theory. Although I use various conventional tools, I always incorporate EW to point me in the right direction.
I have highlighted my belief that BTC is in a regular flat correction in past posts. This simple correction can be found either at Wave two or wave 4. Considering that wave 2 of this cycle was a Zig-Zag for the rule of alternation, it is plausible that Wave four will be a flat formation or a triangle. Unfortunately, I excluded the triangle formation when BTC broke the 46k, and I am now firmly convinced that it is a flat correction. To sustain this Hypothesis, I have subdivided the various rallies and dips into subwaves. The flat correction subdivides in 3-3-5 waves (Wave A= 3 waves, Wave B = 3 waves, Wave C = 5 waves). I have labelled on the chart the various waves (ABC) and the subdivision of Wave C for your understanding. Furtherly we can see that the current wave C can be subdivided into 2 and 1/2 waves. Therefore we are missing the end of Wave three, the corrective wave 4, and the last leg down, wave 5, which would complete Wave C. How is the personality of wave C?
Wave C is a steep painful correction, increasing in volume and very bearish sentiment.
So far, the description checks all the boxes.
What do we also know? That Wave three usually retrace to wave 4 of minor degree or often 0.382 of its length. The current 0.382 of wave 3 of primary degree (2020 rally) sit at $22123. Even more interesting is that regular flat EW explains they retrace 120-130% of the length of Wave A starting from the end of wave B to a maximum of 160%. The targets considering the above would then be between 24k and 26k. However, considering the projection of the completed wave C following the EW proportion, the target would be $21099. I have also drawn the EW channel connecting the peak of wave 1 and wave 3 and drawn the parallel line starting from the bottom of wave 2, confirming a possible target of $22500. Lastly, to conclude my Hypothesis, the 200W MA projection will be sitting at around 21k. The 200 MA have played as a support in the last correction and bear market of 2018.
Hence my prediction is that the bottom will settle between 21k -24k. That will be a magnificent opportunity.
FOLLOW ME, SHARE, LIKE AND COMMENT
Many of you are aware that I am a fan of Elliott Wave Theory. Although I use various conventional tools, I always incorporate EW to point me in the right direction.
I have highlighted my belief that BTC is in a regular flat correction in past posts. This simple correction can be found either at Wave two or wave 4. Considering that wave 2 of this cycle was a Zig-Zag for the rule of alternation, it is plausible that Wave four will be a flat formation or a triangle. Unfortunately, I excluded the triangle formation when BTC broke the 46k, and I am now firmly convinced that it is a flat correction. To sustain this Hypothesis, I have subdivided the various rallies and dips into subwaves. The flat correction subdivides in 3-3-5 waves (Wave A= 3 waves, Wave B = 3 waves, Wave C = 5 waves). I have labelled on the chart the various waves (ABC) and the subdivision of Wave C for your understanding. Furtherly we can see that the current wave C can be subdivided into 2 and 1/2 waves. Therefore we are missing the end of Wave three, the corrective wave 4, and the last leg down, wave 5, which would complete Wave C. How is the personality of wave C?
Wave C is a steep painful correction, increasing in volume and very bearish sentiment.
So far, the description checks all the boxes.
What do we also know? That Wave three usually retrace to wave 4 of minor degree or often 0.382 of its length. The current 0.382 of wave 3 of primary degree (2020 rally) sit at $22123. Even more interesting is that regular flat EW explains they retrace 120-130% of the length of Wave A starting from the end of wave B to a maximum of 160%. The targets considering the above would then be between 24k and 26k. However, considering the projection of the completed wave C following the EW proportion, the target would be $21099. I have also drawn the EW channel connecting the peak of wave 1 and wave 3 and drawn the parallel line starting from the bottom of wave 2, confirming a possible target of $22500. Lastly, to conclude my Hypothesis, the 200W MA projection will be sitting at around 21k. The 200 MA have played as a support in the last correction and bear market of 2018.
Hence my prediction is that the bottom will settle between 21k -24k. That will be a magnificent opportunity.
FOLLOW ME, SHARE, LIKE AND COMMENT
CFcryptoTA
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check the youtube channel out
youtube.com/channel/UC1nxHmfbU0pyoX7Bp-ayDuA
Telegram channel for 1 to 1 chat: t.me/TAEW4
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