We anticipated both wedges to break down and now I believe BTC is now completing wave 1 of an impulse wave. It dropped out of the last wedge for what felt like roughly half a second and headed right back up into the impulse structure that I have been anticipating. It is a bit early and I won't have an confirmation of the impulse nor a super accurate count until the close of wave 2...but here is my knee-jerk count based off of current wave 1 length. I am very much on the conservative side of risk/reward so I will trade once the confirmation of the close of 2 comes through. I don't pull in the gains that I would if I always guessed the start of wave 1, but my losing trades are few and far between. Risk management and setting rules around risk/reward is what allows me to make this my gig. There are a lot of other ways to play this game but this is style that works best for goals and personality.
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Here is my updated count for BTC after the close of 2. I believe that the 5th wave could potentially end at the descending channel line coming off of the top of the previous head and shoulder line. If we do not have a 4th wave bounce up to 5, this would be considered an ABC correction.
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Comment: ABC correction ended up being the right call. Now we can see the benefit to getting in at the close of 2 (or B in this case). Regardless of whether a structure is an ABC correction or an impulse wave you are safe with a wave 2 (b) confirmed close.
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Another impulse wave setting up to the tops of channel. Short-term bullish, medium term bearish (bounce off top of channel).