Hi y'all. Horrible drop, right? Of course. Nobody likes to see that amount of red in the whole market, but if you take the broad picture it seems to make sense. At least if you believe in Elliott Theory.
April was beautiful, right?, that's because that was our Wave 1. And what a wave it was!!!. We went from sub 6k to touching the 10k ceiling in less than a month. After that the inevitable happened, people panicked because bull strength ran out and people took profit. That it's normal. But we wanted more, and we expected a short correction to keep on the party.
Well, according to the Elliot Theory, 1st waves are tricky. They are the ones that start things, and even when they fade we can't be 100% that was a 1st wave and not a continuation of the former trend. Proof of this is that 1st waves tend to correct a lot. In some cases, 99% of the whole wave.
So right now where are we? According to my analysis, still correcting (duh), but it seems that we are starting the corrective wave C, which according to the fractal available it will take us to sub 7k levels. We must test the bottom of that whole symmetric triangle where we re now. We must (I repeat, MUST) test and bounce from that support, but I think that after that test we will break it. And after that, of course we are gonna panic. There will be blood on the whole market. But I ask you to look beyond all that. WE...ARE...CORRECTING...WAVE...1.
So, my focus is in the start of our former wave 1, 6.4k. That is the real support. We must not go below this price. Doing so invalidates my whole analysis.
Of course any higher bounce will be good. I really want to retest 10k right now, and want the moon and beyond, but this is the greatest bear market that Bitcoin has experienced since the MtGox debacle. In order to surpass it the bears have to lose strength, and that will only be accomplished once we go down, or else any attempt from the bulls will be thwarted.
So, my bias as a swing trader is to go Long with a dollar average approach.
Once we went circa 10k just a month ago you were praying to have a second chance to have these prices to go long. This is your chance. Be patient.
Happy trading!!!
April was beautiful, right?, that's because that was our Wave 1. And what a wave it was!!!. We went from sub 6k to touching the 10k ceiling in less than a month. After that the inevitable happened, people panicked because bull strength ran out and people took profit. That it's normal. But we wanted more, and we expected a short correction to keep on the party.
Well, according to the Elliot Theory, 1st waves are tricky. They are the ones that start things, and even when they fade we can't be 100% that was a 1st wave and not a continuation of the former trend. Proof of this is that 1st waves tend to correct a lot. In some cases, 99% of the whole wave.
So right now where are we? According to my analysis, still correcting (duh), but it seems that we are starting the corrective wave C, which according to the fractal available it will take us to sub 7k levels. We must test the bottom of that whole symmetric triangle where we re now. We must (I repeat, MUST) test and bounce from that support, but I think that after that test we will break it. And after that, of course we are gonna panic. There will be blood on the whole market. But I ask you to look beyond all that. WE...ARE...CORRECTING...WAVE...1.
So, my focus is in the start of our former wave 1, 6.4k. That is the real support. We must not go below this price. Doing so invalidates my whole analysis.
Of course any higher bounce will be good. I really want to retest 10k right now, and want the moon and beyond, but this is the greatest bear market that Bitcoin has experienced since the MtGox debacle. In order to surpass it the bears have to lose strength, and that will only be accomplished once we go down, or else any attempt from the bulls will be thwarted.
So, my bias as a swing trader is to go Long with a dollar average approach.
Once we went circa 10k just a month ago you were praying to have a second chance to have these prices to go long. This is your chance. Be patient.
Happy trading!!!