Bitcoin is in wave 5 of a downward move
Elliot Wave theory in it's most simplified form is just impulse waves and corrective waves. The impulse waves move in the direction of the trend. The corrective waves are counter trend and we should expect them to reverse until proven otherwise.
Typically a move steeper than 45 degrees is impulsive and under 45 degrees is corrective. There are exceptions, it's just a guideline. Breaking of parallel channels is also indicative of impulsive price action, and being contained in the channel indicates corrective price action.
Trend is still down and this should be clear as we just printed a symmetrical triangle which is a continuation pattern. Triangles almost always appear in wave 4 so that would make this the final of 5 waves down and then we either correct and continue down or a new up trend will begin.
We can only be confident that a new up trend is starting if and when the move up becomes impulsive. So I have not been trying to catch this knife. IMO the best trade right now is no trade, and to wait for the market to commit to the upside. I am talking about futures trading of course and not spot positions.
As wave 1 of this move down was a short wave the most likely length of wave 5 is also short.
I wouldn't like to stake my name on calling where the exact bottom is but if someone put a gun to my head I would say it's $31,128
Typically a move steeper than 45 degrees is impulsive and under 45 degrees is corrective. There are exceptions, it's just a guideline. Breaking of parallel channels is also indicative of impulsive price action, and being contained in the channel indicates corrective price action.
Trend is still down and this should be clear as we just printed a symmetrical triangle which is a continuation pattern. Triangles almost always appear in wave 4 so that would make this the final of 5 waves down and then we either correct and continue down or a new up trend will begin.
We can only be confident that a new up trend is starting if and when the move up becomes impulsive. So I have not been trying to catch this knife. IMO the best trade right now is no trade, and to wait for the market to commit to the upside. I am talking about futures trading of course and not spot positions.
As wave 1 of this move down was a short wave the most likely length of wave 5 is also short.
I wouldn't like to stake my name on calling where the exact bottom is but if someone put a gun to my head I would say it's $31,128