BTC: Elliot Impulse Wave completed: Correction Inbound

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Hello All!

By taking a wider view point, we can see that BTC has cleanly completed a 5 point Impulse Wave up from COV-Crash lows, meaning that we can keep our eyes peeled for a corrective wave to Short on. Targets are taken to enter at Donchian break lows on 3H timeframe, or the risk-takers may try to add shorts at 7.5-7.7K range. SL target is the current recent 3H Donchian high but would advise implementing a trailing stop position for this, or some careful monitoring given the potential market volatility in this period.

TP has been placed along the downtrend created by the Corona-Corrective wave from December/Januarys bull run, which also neatly fits into a 50% Retracement of the Impulse Wave. Again, I would suggest a well-adjusted trailing stop and/or careful monitoring.

ATR has slowly settled down to pre-crash levels suggesting the capability for another major swing, and trendlines have been very well respected by BTC recently. Market news, especially from the U.S has been overwhelmingly negative recently and it may be time for another round of 'pricing in' said news.

Please Note: Major Trendlines on this chart are established using Line/Area graphs for clean price action and noise filtering. Heikin-Ashi has been used to publish the idea, but I find that focusing trendlines on crazy wicks isn't a good focus and that trading based on where the price was for 1 minute out of a 4-8H period can lead to very off targets.

All the best!