TLDR:
I believe that Bitcoin has completed its correction.
I am waiting for a retracement to 40.2K – 40.7K. If Bitcoin retraces to my target area and holds it as support, I will long Bitcoin with the initial target of 43.7K, but it could go as high as 59K.
Correction:
A correction has two aspects: the degree of correction on price and the time the asset spends in a correction.
Regarding price, Bitcoin corrected below the 0.382 Fibonacci retracement, which is the bare minimum. I would have liked to see a deeper correction to the 0.5 retracement to balance the price appreciation. However, it meets the minimum requirements.
From a time perspective, the ratio between the time spent in an uptrend to the time Bitcoin spent in a correction is 1:10, which is insufficient. However, price is king. If the price sends a bullish signal, I will follow the price.
Reaction Off the Low:
I would be grateful if someone would review my count and corroborate it.
1. After reaching the low of 38.55K Bitcoin, Bitcoin reached 40.55K. I consider this a wave
2. From 40.55K, Bitcoin corrected to 39.493K, which is slightly below the 0.5 retracement and meets the requirement of wave 2.
3. From 39.493K, Bitcoin rose to 42.239K, above the 1.272 Fibonacci extension, and meets the minimum required of a wave 3.
4. following the high of 42.239K, Bitcoin retraced to 41.35K, which is below the 0.236 retracement and meets the requirements of wave 4.
5. From 41.35K, Bitcoin rose to 42.836K, which is above the 0.618 extension of waves 1 and 4, which completed the requirements of wave 5.
Retracement:
I expect Bitcoin to retrace in a correction between the 0.5 retracements at 40.7K and the 0.618 retracements at 40.2K. If Bitcoin holds this level as support, then I will enter a long trade.
Trade Idea:
Entry: 40.7K
SL: 40.1K
Target: 43.76K
R: R: 1:5.4 (Low-Risk).
NFA
What do you think? Please share in the comments.
Best Wishes.
I believe that Bitcoin has completed its correction.
I am waiting for a retracement to 40.2K – 40.7K. If Bitcoin retraces to my target area and holds it as support, I will long Bitcoin with the initial target of 43.7K, but it could go as high as 59K.
Correction:
A correction has two aspects: the degree of correction on price and the time the asset spends in a correction.
Regarding price, Bitcoin corrected below the 0.382 Fibonacci retracement, which is the bare minimum. I would have liked to see a deeper correction to the 0.5 retracement to balance the price appreciation. However, it meets the minimum requirements.
From a time perspective, the ratio between the time spent in an uptrend to the time Bitcoin spent in a correction is 1:10, which is insufficient. However, price is king. If the price sends a bullish signal, I will follow the price.
Reaction Off the Low:
I would be grateful if someone would review my count and corroborate it.
1. After reaching the low of 38.55K Bitcoin, Bitcoin reached 40.55K. I consider this a wave
2. From 40.55K, Bitcoin corrected to 39.493K, which is slightly below the 0.5 retracement and meets the requirement of wave 2.
3. From 39.493K, Bitcoin rose to 42.239K, above the 1.272 Fibonacci extension, and meets the minimum required of a wave 3.
4. following the high of 42.239K, Bitcoin retraced to 41.35K, which is below the 0.236 retracement and meets the requirements of wave 4.
5. From 41.35K, Bitcoin rose to 42.836K, which is above the 0.618 extension of waves 1 and 4, which completed the requirements of wave 5.
Retracement:
I expect Bitcoin to retrace in a correction between the 0.5 retracements at 40.7K and the 0.618 retracements at 40.2K. If Bitcoin holds this level as support, then I will enter a long trade.
Trade Idea:
Entry: 40.7K
SL: 40.1K
Target: 43.76K
R: R: 1:5.4 (Low-Risk).
NFA
What do you think? Please share in the comments.
Best Wishes.
