CastAwayTrader

Bitcoin - a rally to 4,000 - 4,100 will be a good short

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
In my previous update posted on 24 Feb 2019 I wrote:

"This current drop into 3,820 is clearly only the first leg down in wave a of ii.

Despite the fact we should get a corrective wave b up and that could get as high as the previous top over 4,000 I would encourage you not to take your chances and wait for a corrective wave b up to top and then you may try to short Bitcoin for the final leg of corrective decline in wave c of ii down. The reason is that wave b is the least reliable wave. It can get as shallow as 23.6% of the preceding drop and you will not be able to close your long.
My overall expectations have not changed. The ideal target for that final decline in wave c of ii is between 3,610 and 3,530. This is where I will start loading bitcoin again."

As you can see on the chart below, off the low of the first drop we got a small move up in wave a up (red), then small b down (red ) and now we are left with one more rally in wave c (red ) that would complete the whole a-b-c correction off 3,820 low. That rally completing the corrective wave b up (blue) may target 4,000 - 4,100. nice that corrective wave b up tops out we should see a nice impulsive looking drop that may retest previously broken resistance at 3,650. I reiterate my plan to load up again at that point.

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