Elliot wave count, 5th wave could be truncated : short term bias
Hello fellas, once again I provide you my analysis about bitcoin. without further chit chat, let's get to the point.
Here it is my detailed elliot wave count on bitcoin. Right after the call of bearish rising wedge or we can call it a leading first wave diagonal, we've seen a really huge up trend push form the bulls. I will label this moves as the 3rd wave going up on bitcoin on my short term view which has just finished, This means that current price is at the 4th wave phase which is the correction wave for wave 3. Based on elliot waves rules and guideline, we can easily deduce that the 4th wave could end up on fibonacci levels whether it is on 23.6 , 38.2 , 0.5 or the golden pocket as long as the price doesn't drop more than a wick of the 1st wave territory. The wave 4 trade is usually the most tricky wave that occur between the others wave so we have to be cautious.
yes, there is a possible moves of one more waves up which will be labeled as the wave 5. But, I want you all to remember that even the wave 5 can be truncated which can make a lower high comparing to the wave 3 and considering the current price is trending just below the upper line of the huge channel (green dotted line) this truncated wave 5 could occur too.
As of now, I am still on my long position and I use the white support trend line on smaller timeframe as the guideline. If the price breaks this support trend line, I will switch my long position into short and try to catch the wave 4. But, If this trend line can hold, I do believe that the price will touch at least the previous high.
Here it is my detailed elliot wave count on bitcoin. Right after the call of bearish rising wedge or we can call it a leading first wave diagonal, we've seen a really huge up trend push form the bulls. I will label this moves as the 3rd wave going up on bitcoin on my short term view which has just finished, This means that current price is at the 4th wave phase which is the correction wave for wave 3. Based on elliot waves rules and guideline, we can easily deduce that the 4th wave could end up on fibonacci levels whether it is on 23.6 , 38.2 , 0.5 or the golden pocket as long as the price doesn't drop more than a wick of the 1st wave territory. The wave 4 trade is usually the most tricky wave that occur between the others wave so we have to be cautious.
yes, there is a possible moves of one more waves up which will be labeled as the wave 5. But, I want you all to remember that even the wave 5 can be truncated which can make a lower high comparing to the wave 3 and considering the current price is trending just below the upper line of the huge channel (green dotted line) this truncated wave 5 could occur too.
As of now, I am still on my long position and I use the white support trend line on smaller timeframe as the guideline. If the price breaks this support trend line, I will switch my long position into short and try to catch the wave 4. But, If this trend line can hold, I do believe that the price will touch at least the previous high.
