CryptoCow

Bitcoin - this correction is not over yet. Elliott wave analysis

Short
COINBASE:BTCUSD   Bitcoin / U.S. Dollar
I know that everyone is super bullish now, with ETH creating new all time highs and all that, but I think we have further downside to BTC before us, before we can move higher and create new ATH for BTC as well.

If you look at the chart, this is the EW count that makes the most sense to me right now.

I think that the wave C of an ABC correction has just started.

It might lead us to around 26k, which would be the 61.8% Fib-level and thus a very logical target, be we might also just put in a double bottom at 29k (50% level), if the sentiment remains bullish .

In Wave A (drawn as a 5-wave on my chart), we had an extended wave 1. Wave 3 is shorter than wave 1, but it is not the shortest, because wave 5 was even shorter.

Wave A (of the bigger B) reached unusually high, thanks to the Elon Musk pump.
The 23.8% Fib-level would have been otherwise a logical target for that.

A clear break above 39k would invalidate this analysis.

So what do you think?
If you are an EW trader, please share your count in the comments.



Comment: Since we clearly broke above 39k and even 40k, this scenario seems less and less likely.

However, thinking about it a bit further, it would be very common vor the C wave to have the same length as wave A (blue in the chart above).

This would bring us very close to the ATH, thus possibly creating a double top.

But we will have to see and wait what exactly will play out.
Order cancelled: Well of course, this analysis got invalidated by the rally above the ATH.

So it seems the correction is over for now, but an even bigger one will follow relatively soon, when we finish the 5th wave up.

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