We've had a great bull run since Dec 15 to Dec 24, but now it's correction time.
Even though an ascending triangle is generally bullish formation, what we're seeing now is the formation of Elliott Triangle Wave (ABCDE) as a (B) wave of ABC correction.
This means we still have to go down on a wave C, before another rise with the Wave 3.
It's possible that the wave e is already formed on Jan 5, which means that with the break of trendline that goes through b and d waves (approximately level 3890) BTC will go sharply down to finish the correction cycle.
The short targets are:
1) (3630 - 3700) -> .618 Fib retracement of full 5-wave structure and .618 Fib extension of (A) wave.
2) (3350 - 3480) -> .786 Fib retracement of full 5-wave structure and 1 Fib extension of (A) wave.
With one of these targets met we can expect a beginning of Impulse Wave 3 that will take us beyond 4500 level. But that's the story for another time.
Thanks for checking out this idea, comments and likes are greatly appreciated.
Even though an ascending triangle is generally bullish formation, what we're seeing now is the formation of Elliott Triangle Wave (ABCDE) as a (B) wave of ABC correction.
This means we still have to go down on a wave C, before another rise with the Wave 3.
It's possible that the wave e is already formed on Jan 5, which means that with the break of trendline that goes through b and d waves (approximately level 3890) BTC will go sharply down to finish the correction cycle.
The short targets are:
1) (3630 - 3700) -> .618 Fib retracement of full 5-wave structure and .618 Fib extension of (A) wave.
2) (3350 - 3480) -> .786 Fib retracement of full 5-wave structure and 1 Fib extension of (A) wave.
With one of these targets met we can expect a beginning of Impulse Wave 3 that will take us beyond 4500 level. But that's the story for another time.
Thanks for checking out this idea, comments and likes are greatly appreciated.
Comment:
First target reached! Waiting for pullback to enter another short to second target
Trade closed: target reached:
Second target reached! What an amazing ride!
