Bitcoin seems to be in its last correction pattern. All rules for a correct Elliott impuls wave pattern are fulfilled. To prove this, we have to zoom out to the 1W chart. Now we're watching the primary waves.
- (4) may not be lower than (1)
- may not be the shortest
- (2) may not be lower than (0)
Now we're going back to the 1D chart in order to see when the price used to be corrected in the past and what it is doing now.
As we can see, we had a major bearish divergence before every single correcton wave. In both cases the trend reversed exactly at the 30 line on the RSI.
Right now, we are in a sector of very low volume and spiky volatility in both directions.
RSI = avg(up) / avg(up)+avg(down)
That's why the last spiky dip to 5150 didn't change much on the RSI, the chart stayed in the overbought readings.
So now we're watching the 4H Chart to see the short-term movement.
The clearly overbought RSI of the 1D chart is already back to neutral in the 4H timeframe. However, the 4H RSI never went below 20. When we look at the given points (2) and (4) the trend reversed at exactly this line.
Result: It is more likely that we see one or more sharp dips to the given reversal area (grey lines) before a major move to the upside. A slow movement would lead to a sinking RSI on the lower timeframe.
As correction target I have set the beginning and the end of the last major divergence as you can see in the chart.
After this formation I am STRONG LONG on BTC. Remember what happend last year between christmas and Jan 6th. If market situation is good (China+Russia) we have to celebrate a 5 digit Bitcoin.
- (4) may not be lower than (1)
- may not be the shortest
- (2) may not be lower than (0)
Now we're going back to the 1D chart in order to see when the price used to be corrected in the past and what it is doing now.
As we can see, we had a major bearish divergence before every single correcton wave. In both cases the trend reversed exactly at the 30 line on the RSI.
Right now, we are in a sector of very low volume and spiky volatility in both directions.
RSI = avg(up) / avg(up)+avg(down)
That's why the last spiky dip to 5150 didn't change much on the RSI, the chart stayed in the overbought readings.
So now we're watching the 4H Chart to see the short-term movement.
The clearly overbought RSI of the 1D chart is already back to neutral in the 4H timeframe. However, the 4H RSI never went below 20. When we look at the given points (2) and (4) the trend reversed at exactly this line.
Result: It is more likely that we see one or more sharp dips to the given reversal area (grey lines) before a major move to the upside. A slow movement would lead to a sinking RSI on the lower timeframe.
As correction target I have set the beginning and the end of the last major divergence as you can see in the chart.
After this formation I am STRONG LONG on BTC. Remember what happend last year between christmas and Jan 6th. If market situation is good (China+Russia) we have to celebrate a 5 digit Bitcoin.
