The beauty of elliott waves is not only in their invaluable analytic tools but also in their trading methology. They tells us that previous W4 area acts as a support/resistance. When price action breaks this zone it often suggets that the trend has changed and reversal is more likely.
This indeed happended recently on BTCUSD. Price action exceeded the prevous W4 termination point (In this case it was the end of wave E of triangle). It was rejected from strong 42k resistance but since we got the confirmation any pullback can be perceived as BUY THE FKING DIP.
Momentum of the pullback is lowering which may indicate that reversal is near. We are also above POC and Daily MA21. This confluence provide us with a high-probability setup.
I do not want to see prices below 34k. If we drop below I will start considering alternatives count but for now this count is the most likely.
Keep monitoring the situation and adjust accordingly. Remember, price action knows the best. It is the current opinion of all market participants.
This indeed happended recently on BTCUSD. Price action exceeded the prevous W4 termination point (In this case it was the end of wave E of triangle). It was rejected from strong 42k resistance but since we got the confirmation any pullback can be perceived as BUY THE FKING DIP.
Momentum of the pullback is lowering which may indicate that reversal is near. We are also above POC and Daily MA21. This confluence provide us with a high-probability setup.
I do not want to see prices below 34k. If we drop below I will start considering alternatives count but for now this count is the most likely.
Keep monitoring the situation and adjust accordingly. Remember, price action knows the best. It is the current opinion of all market participants.