[BTC] To 5900 We Go!

If you were following my last idea you would have saw that I described a scenario where we could have formed a double bottom at 7200 before making a bullish reversal. Unfortunately, we failed to gain support at 7200 and had an Elliot wave failure while tracing out our "B" correction wave. This post covers the last update I left on my previous idea.

What you're looking at right now is the result of our EW failure. From 7200 we went down some more and formed a bear flag . I wanted to wait until we had a confirmed move downwards until I posted this idea since more confirmation is always better in the world of trading. Anyways, to make this nice and quick I see us going down to 5900 before making any type of meaningful reversal. Keep in mind that this move will not come in one candle. This is a move that will require a few days, if not a couple weeks.

Comment:

Although we made a reversal it's not a meaningful one. Overall volume is still declining which leads me to believe it's another bear trap. When volume does not correspond to price action we must exercise caution.

*As always this information is not a recommendation to buy or sell. It is to be used for educational purposes only.*

Comment:

Just as I had anticipated we fell victim to another bull trap (I accidentally called it a bear trap in my last update). Our entry target of 5900 remains in play.