I've always been short on bitcoin and even though we had a huge rally a few days ago there was always a chance the market will come back down based on structure and price action and after the downward impulse that we had a couple days ago the market is finally giving us a bearish corrective structure. Now the question is, are we going to get a 3 wave corrective pattern or a 5 wave corrective pattern? There's no possible way of knowing which corrective pattern the market is likely to give and so the best way to trade this is wait for the market to break below the mini rising trendline and wait for a slight correction before going short.
The 3 wave corrective pattern has already completed after the market retraced to the 50% Fibonacci retracement of the downward impulse leg so we now have to wait and see if the market will break below the mini rising trendline or if it will go back up and complete the 5 wave corrective structure at the 61.8 Fibonacci retracement level before it continues going down!
When we get a break then expect the market to go down to the 127.0 Fibonacci extension as the first target zone!
The 3 wave corrective pattern has already completed after the market retraced to the 50% Fibonacci retracement of the downward impulse leg so we now have to wait and see if the market will break below the mini rising trendline or if it will go back up and complete the 5 wave corrective structure at the 61.8 Fibonacci retracement level before it continues going down!
When we get a break then expect the market to go down to the 127.0 Fibonacci extension as the first target zone!
