BITCOIN - Mid Term View: NEUTRAL

in #bitcoin6 years ago (edited)

Target's Hit, What's Next?

Screen Shot 2018-07-16 at 08.14.14.png

ABC Correction

  • There are 2 possibilities of ABC corrections in this case.
  • 1st is that we've already completed the correction (green waves). And this one is most likely to me cause we hit the fibonacci level at 61%.
  • 2nd is a longer one and would indicate that we're on the B wave now and that we have one more leg down to the next support zone which is at $5,900 (red waves)
  • Either way, to trade these scenarios, I would concentrate on buying on support and selling at resistance levels.

Screen Shot 2018-07-16 at 13.12.48.png

Where Do We Go From Here?

  • Bullish divergence when RSI is gaining strength and price is moving down.
  • However, we're at a resistance zone both in price and also in RSI strength so beware. If we get rejected here, I would expect a price dump to the orange line.
  • Check next picture for mid term view.

Screen Shot 2018-07-16 at 13.33.58.png

Mid Term Elliott Wave Count

  • Mid term target at around $7,600
  • Currently in the 3rd impulse wave. This count will get a stronger confirmation if we see a lot of volume here. If not, I would be cautious.
  • First obstacle is $6,800. Let's see if we can break that resistance zone.

Screen Shot 2018-07-16 at 13.42.01.png

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Option 3, as described by @ew-and-patterns, is that your white wave 3 is actually 5, followed by an expanded flat correction where your 5 is B. This fits better to me because the decline off of your white 5 looks like 5 waves not 3, so this fits for a C wave. Or it could be A of a 5-3-5 ABC.

Thanks for sharing. That's possible too yes, however, my first count will essentially result to the same bigger count, which is that we're in the 3rd impulse wave. I will hit @ew-and-patterns up and ask what he thinks too. Cheers.

Correct, the ultimate outcome is the same so we’re all happy!

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