ScottCarney

BTCUSD Harmonic AB=CD Pattern Type I Reaction

Short
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
I outlined the harmonic resistance in the 8k area. The AB=CD completed at 7600 while the Bearish Three Drives at 8250. The market topped last week just shy of 8k - 7880 exactly. Despite the fact that the Bearish Three Drives fell just shy, this recent peak IS an important inflection point that will lead to a larger correction. As I said in my prior post, a 30-50% haircut is likely. A 50% drop back to 3800 is possible but the NATURAL HARMONIC TYPE-I REACTION that I defined in my "Harmonic Trading: Volume One" book experiences a 38.2% of the measured structure. In this case, the AB=CD is the relevant pattern that possesses a 38.2% weekly retracement at 4800. Currently, BTCUSD is trading back at 6k but I would wait for the minimum pullback to the target before accumulating more Crypto. Update to follow...

Scott Carney
http://www.HarmonicTrader.com
Founder
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