BTC may have completed correction wave formation
According to the Elliot Wave Theory, a correction wave comprises three minor waves.
In the BTCUSDT 1H TF chart, I drew three correction waves- Zigzag(ABC), Flat(ABC) and Diagonal(I,II,III,IV, and V(12345)).
All of these waves seem to accord with EW theory, apparently without a violation (if any, please comment below).
So we've now got a complete correction wave.
Since the end of it means the resume of a major trend, this weekend's significant price drop (labeled (a)(b) and (c) on the right end) isn't likely a minor dip or pullback.
From the S &R point of the view, the chart nicely follows the Fibonacci arcs (of the smart tool, Gann Square). The red one exhibited an undoubtedly strong resistance.
A radius of each circle serves rather strong support and resistance.
Now the price has rebounded there, we could expect some upside or a minor relief rally, possibly up to some key levels of 22500, 22800, or 23000.
But remember, once this level is broken- we should expect a strong directional movement.
This is not financial advice.
Do your research.
In the BTCUSDT 1H TF chart, I drew three correction waves- Zigzag(ABC), Flat(ABC) and Diagonal(I,II,III,IV, and V(12345)).
All of these waves seem to accord with EW theory, apparently without a violation (if any, please comment below).
So we've now got a complete correction wave.
Since the end of it means the resume of a major trend, this weekend's significant price drop (labeled (a)(b) and (c) on the right end) isn't likely a minor dip or pullback.
From the S &R point of the view, the chart nicely follows the Fibonacci arcs (of the smart tool, Gann Square). The red one exhibited an undoubtedly strong resistance.
A radius of each circle serves rather strong support and resistance.
Now the price has rebounded there, we could expect some upside or a minor relief rally, possibly up to some key levels of 22500, 22800, or 23000.
But remember, once this level is broken- we should expect a strong directional movement.
This is not financial advice.
Do your research.
Comment:
I realized the lower edge of daily Ichimoku cloud and 25EMA on 4H timeframe sit on about 22000 level. Because they could combine as a strong resistance, the above-stated forecast could be too optimistic, and if so, the recovery would terminate shortly. Take care.
