According to this analysis we could be at the beginning of the end of a complex correction (WXY) landing us on the juncture of two crossing channels (bearish corrective channel, red modified schiff and bullish impulse channel, green modified schiff).
In support of this current count stands the bullish divergence (higher low on MFI and lower high in price action) indicating a weakening in selling pressure. In addition: The target of (c) and thus the end of WXY would land us at the 1.618 of the corrective wave X and at the 0.618 extension of (a). This would correlate with 0.786 of a in the higher degree giving us nice convergence on different time frames.
In accordance we should see a re-test of the top bound of the bearish channel at about $8000 before heading down to our final target at the lower bound of the previous bullish channel (green modified schiff ) at $5400 in what could be the beginning of wave C of the higher degree.
Validation would show a significant bounce at the bear-channel. Invalidation would be a break of the bull channel resistance.
In case of invalidation we could see some more downside and a vast bear market.
Please share and comment.
In support of this current count stands the bullish divergence (higher low on MFI and lower high in price action) indicating a weakening in selling pressure. In addition: The target of (c) and thus the end of WXY would land us at the 1.618 of the corrective wave X and at the 0.618 extension of (a). This would correlate with 0.786 of a in the higher degree giving us nice convergence on different time frames.
In accordance we should see a re-test of the top bound of the bearish channel at about $8000 before heading down to our final target at the lower bound of the previous bullish channel (green modified schiff ) at $5400 in what could be the beginning of wave C of the higher degree.
Validation would show a significant bounce at the bear-channel. Invalidation would be a break of the bull channel resistance.
In case of invalidation we could see some more downside and a vast bear market.
Please share and comment.
Trade active:
Even though the last week hasn't really shown any movement, we can currently see a slight bullish bias, giving us hope that our target b might be reached.
However, we would be wise to manage our stop-losses accordingly (maybe even set them to break-even) in order to avoid any surprises - after all we are in a bear market.
However, we would be wise to manage our stop-losses accordingly (maybe even set them to break-even) in order to avoid any surprises - after all we are in a bear market.