There is an expanding symmetrical triangle (megaphone pattern) in Elliott Wave Theory. I'm not saying this is definitely happening, but if we see an impulsive reversal after dropping a bit lower, below wave ((a)) support, then it becomes a possibility.
This is the same fourth wave pattern we saw in the Dow where the March 2020 drop was wave E of the triangle. It's always good to know and understand the possibilities.
As I have mentioned numerous times before, it's also possible that wave 5 ended at the ATH. It's also possible that the ATH is only wave 3 and the current three wave pullback is wave 4. This is just one possible pattern that could play out. There are often multiple possibilities when price prints a range.
point A in this wave theory wouldve been the ATH first top at ~64k then B the first capitulation, C the next ATH at 69k, D the next bottom (which we're going to right now), and E will be the next top which should be over 70k.... after that, pattern is complete, and it breaks up more often than down. this type of pattern isnt going to complete at its bottom (E) and then go up. it would go down. which means huge bear market (sub-15k BTC, but thats impossible)
Chris_Inks
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@ezpi, Actually, the pattern is correct as labeled. Elliott Wave triangles are continuation patterns, often the penultimate move leading to the final wave in the series. Ergo, wave E must complete at the final swing low so that wave 5 can rally to a new ATH.
ezpi
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@TexasWestCapital, wouldnt that imply continuation (down) when it completes? thats what I thought elliot wave theory was about. youre saying its continuation from beginning point rather than end point. hmmm ok interesting. ill have to read up on it more.
Chris_Inks
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@ezpi, It is a continuation of the sequence. In this count, the trend has been up in 3 waves. So, this triangle, as labeled, is wave 4 (a correction). Wave 5 would, then, follow the overall bullish trend to a new high.
AurieK
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Yes, very well said....
Bitcoinandyy
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Would love this.
MynameisTeo
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:) at this possibility I don't think befor, your post...sure very possible...will see
digitalimagestall
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We had initially thought that this could be an extended flat till we realised that the down leg from the 3rd is actually a 5 wave down. That convinced me that, the clear 5-wave up was a truncation after that and the 5 wave up was complete. Added to my conviction is the length of the initial correction from the 3 to 4 which is way too long compared to the 2nd wave. So we are expecting price to go way down lower, first to 23K after the pullback then to 14K. Cheers.
Chris_Inks
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@digitalimagestall, Except that it's possibly not a 5 wave down from the 3rd. Look closer. You can count a wxy correction. Also, I'm not sure what you mean by the initial correction from 3 to 4 being too long. The May 9th low is not quite a 38.2% retracement. So, that would be very clean initial fourth wave target territory.
then B the first capitulation, C the next ATH at 69k, D the next bottom (which we're going to right now), and E will be the next top which should be over 70k....
after that, pattern is complete, and it breaks up more often than down.
this type of pattern isnt going to complete at its bottom (E) and then go up. it would go down. which means huge bear market (sub-15k BTC, but thats impossible)