Wave Explanation: ZigZags are corrective waves labeled ABC. It appears the ATH of 42,000 marks wave 5 at the minor degree and possibly marks wave 3 at the intermediate degree.
Channel Explanation: We can draw a channel from wave A to wave B and expect price action to stay contained within the channel. !!!-CAUTION-!!! wave B is not 100% confirmed.
Wave / Channel Analysis: We recently profited on a drop in price to $30,000 (around the low of wave a) and saw price rebound. We are are now on the hunt again for a another short setup to enter our 2 trades. Remember, we always enter 2 trades in the same direction with different profit targets.
Momentum Analysis: Weekly momentum is bearish. Daily momentum has flipped bullish. This will be a perfect short signal when the daily momentum flips bearish and a new entry signal flashes.
Stay tuned for updates as we look to enter a trade on BITSTAMP:BTCUSD soon.
Updating the chart to include fib based time extension and show dual timeframe on same layout:
tricor2000
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Wave count still in tact with the weekly close but it is possible we have already seen wave C close on 1/22/21. Keeping an eye on our indicators and price action for our next entry.