Watch the 50% retracement for signal of consolidation or failure

BTCE:BTCUSD   Bitcoin / Dollar
378 6 7
In steep selloff movements, once a bottom bounce has been established, an attempt is made to consolidate around the 50% retracement . In a stable pattern, the oscillations should narrow around that range, eventually flattening sideways to indicate consensus about the new floor. A very strong signal of failure to consolidate will be seen if the current oscillations stall on the way back up, instead of always returning to the 50% after dips. Any sloping down movement *after* a lower oscillation wave node would be a good indicator of another incoming selloff, as the consolidation period will have failed.