All three counts look like they need one more low before a bounce that tells the tale. I suspect the next bounce will suck in many unwary buyers expecting support at or around $40k to hold. While I anticipate a bounce off $38k, the probabilities continue to point price down.
Red count is new to the party as of yesterday although it makes a lot of sense in terms of proportions for a measured move lower to complete the larger degree green circle iv correction. At the larger time scales, it basically follows the same price action as the green count down, but assumes we are still in the red wave i of circle green iv. Although all downside targets remain the same, it does have the potential to bounce much higher than the green count. Resistance shown in red.
Green count is a more immediate downside count with the set up for a fast drop from green micro 2 to green micro three. Stops could be set just above the resistance for any attempts to short at green circle 2. Red count is the more sinister of the bunch as it has the potential to rally much higher than green circle 2 before losing momentum. Resistance shown in green.
Yellow is still hanging on by a thread. But so long as it yellow (iv) does not cross below the price territory of yellow (ii), it's technically a valid ending diagonal with a choppy path to a new high. I think it's the lowest probability of the three counts at this point considering the weekly and monthly MACD show a loss of momentum at larger time frames. I will start plotting the yellow upside count to a new high after the bounce assuming price does not break below the invalidation point.
#NotRecommendation
#NotAdvice
#AllMeasuredMoves
Red count is new to the party as of yesterday although it makes a lot of sense in terms of proportions for a measured move lower to complete the larger degree green circle iv correction. At the larger time scales, it basically follows the same price action as the green count down, but assumes we are still in the red wave i of circle green iv. Although all downside targets remain the same, it does have the potential to bounce much higher than the green count. Resistance shown in red.
Green count is a more immediate downside count with the set up for a fast drop from green micro 2 to green micro three. Stops could be set just above the resistance for any attempts to short at green circle 2. Red count is the more sinister of the bunch as it has the potential to rally much higher than green circle 2 before losing momentum. Resistance shown in green.
Yellow is still hanging on by a thread. But so long as it yellow (iv) does not cross below the price territory of yellow (ii), it's technically a valid ending diagonal with a choppy path to a new high. I think it's the lowest probability of the three counts at this point considering the weekly and monthly MACD show a loss of momentum at larger time frames. I will start plotting the yellow upside count to a new high after the bounce assuming price does not break below the invalidation point.
#NotRecommendation
#NotAdvice
#AllMeasuredMoves
