Hello Traders
I see this pullback as a larger ABC correction. I believe we've more-than-likely just completed a of (B) and will start retracing soon. Alternatively, if the previous weekly open successfully holds as support on a retest of $8 590, there could potentially be one last blow-off to around $8 900 before taking all liquidity at once and screwing longs.
Most were waiting for $8100-$8200 yesterday before this front-running corrective curve ball. The market seldom moves in straight lines and hardly plays out according to the expectations of the masses so I wouldn't be surprised if bitcoin does still sweep those lows but takes the scenic road less traveled to get there via a potential structure called an ‘Expanding Flat' where b of (B) retraces between 105% – 138% of a of (B) (between $8 183 - $7 989), and c of (B) completes with a 1.236 and 1.618 Fibonacci extension of wave a of (B) ($8 937 - $9 161). This should result in at least a 0.618 Fibonacci retracement of (A).
I realize that the 5 wave sub count for (A) is a bit dodge in terms of the time span for wave 4 relative to wave 2 but it makes sense on the higher count and sometimes it's better to not be too meticulous or you'll probably drive yourself mad.
The monthly close will be vital for the bulls. If they're able to break $9 586 and print a higher high on the monthly, there could be fireworks, but that's still a pipe dream at this stage of the correction and not an easy task without this larger correction completing with at least another leg lower.
Good luck and happy trading!
I see this pullback as a larger ABC correction. I believe we've more-than-likely just completed a of (B) and will start retracing soon. Alternatively, if the previous weekly open successfully holds as support on a retest of $8 590, there could potentially be one last blow-off to around $8 900 before taking all liquidity at once and screwing longs.
Most were waiting for $8100-$8200 yesterday before this front-running corrective curve ball. The market seldom moves in straight lines and hardly plays out according to the expectations of the masses so I wouldn't be surprised if bitcoin does still sweep those lows but takes the scenic road less traveled to get there via a potential structure called an ‘Expanding Flat' where b of (B) retraces between 105% – 138% of a of (B) (between $8 183 - $7 989), and c of (B) completes with a 1.236 and 1.618 Fibonacci extension of wave a of (B) ($8 937 - $9 161). This should result in at least a 0.618 Fibonacci retracement of (A).
I realize that the 5 wave sub count for (A) is a bit dodge in terms of the time span for wave 4 relative to wave 2 but it makes sense on the higher count and sometimes it's better to not be too meticulous or you'll probably drive yourself mad.
The monthly close will be vital for the bulls. If they're able to break $9 586 and print a higher high on the monthly, there could be fireworks, but that's still a pipe dream at this stage of the correction and not an easy task without this larger correction completing with at least another leg lower.
Good luck and happy trading!