As BTC's price gradually declines, more and more analysts identify those right-down parallel channels.
Because a parallel channel allows for an interpretation as a complex corrective wave in the language of Elliott wave theory, we are inclined to read this as WXY or WXYXZ.
True, patterns like those provide more precise explanations compared to their absence. However, there is also a narrative that they should only be employed when inevitable.
So, can we bypass their use? Identifying a convincing potential progressive wave could serve as a significant clue.
Clearly, the chart shows a pronounced head and shoulders (H&S) setup, with the right shoulder being a minor or an internal H&S or a descending triangle possibly already having been broken.
If we endorse a (perhaps casual) hypothesis that a breakdown of an H&S initiates an impulsive wave, we could anticipate a sequence as depicted, which supports my bearish perspective from the beginning of this year that isn't coherent with a complex correction scenario here.
In addition, weekly (navy), daily (green), and 4-hour Ichimoku clouds might help identify a truly significant edge of the channel, but they are merely supportive elements in this analysis (note that the parallel channel holds without them).
But this analysis can be vulnerable because it will be invalidated above 27365.
Because a parallel channel allows for an interpretation as a complex corrective wave in the language of Elliott wave theory, we are inclined to read this as WXY or WXYXZ.
True, patterns like those provide more precise explanations compared to their absence. However, there is also a narrative that they should only be employed when inevitable.
So, can we bypass their use? Identifying a convincing potential progressive wave could serve as a significant clue.
Clearly, the chart shows a pronounced head and shoulders (H&S) setup, with the right shoulder being a minor or an internal H&S or a descending triangle possibly already having been broken.
If we endorse a (perhaps casual) hypothesis that a breakdown of an H&S initiates an impulsive wave, we could anticipate a sequence as depicted, which supports my bearish perspective from the beginning of this year that isn't coherent with a complex correction scenario here.
In addition, weekly (navy), daily (green), and 4-hour Ichimoku clouds might help identify a truly significant edge of the channel, but they are merely supportive elements in this analysis (note that the parallel channel holds without them).
But this analysis can be vulnerable because it will be invalidated above 27365.
Comment:
correction: 4-hour Ichimoku cloud (purple).
Comment:
Anaysis invalidated and my SL triggered at 27365.
I need to redo analysis.
I need to redo analysis.
