BTC (arithmetic) - This wave 2/B/X count is a Sidways Double Combo in Elliott terms. That is a:
W(zigzag), X(zigzag), Y(triangle). The X zigzag is awful. But what is interesting, is if you look at TOTAL chart (Total crypto market cap), that same wave is a clear zigzag.
Why do I have (1)/(A)/(W)? This is because Bitcoin may not be doing a huge impulse as per 4-year cycle theory. It may in fact be putting in a huge corrective structure. Considering that the treasury yield curves inverted 12 months ago, be on the lookout for a recession, which would explain why BTC could be putting in a huge corrective structure.
On my 1 hr chart, I suspected BTC would fall to 0.786 fibonacci. And it has tagged 0.786. But, by my count, I need one more wave down (if my count is correct), right into a demand zone.
This is an excellent possibility, since:
1) If BTC just goes up from here, then no harm no foul
2) if BTC does one more wave down, it puts it close to the invalidation line (origin of the diagonal) allowing for a very small Stop Loss of about 1% . So limited damage for being wrong.
Note: Pay attention to the invalidation numbers that I show on the 1 hr chart.
W(zigzag), X(zigzag), Y(triangle). The X zigzag is awful. But what is interesting, is if you look at TOTAL chart (Total crypto market cap), that same wave is a clear zigzag.
Why do I have (1)/(A)/(W)? This is because Bitcoin may not be doing a huge impulse as per 4-year cycle theory. It may in fact be putting in a huge corrective structure. Considering that the treasury yield curves inverted 12 months ago, be on the lookout for a recession, which would explain why BTC could be putting in a huge corrective structure.
On my 1 hr chart, I suspected BTC would fall to 0.786 fibonacci. And it has tagged 0.786. But, by my count, I need one more wave down (if my count is correct), right into a demand zone.
This is an excellent possibility, since:
1) If BTC just goes up from here, then no harm no foul
2) if BTC does one more wave down, it puts it close to the invalidation line (origin of the diagonal) allowing for a very small Stop Loss of about 1% . So limited damage for being wrong.
Note: Pay attention to the invalidation numbers that I show on the 1 hr chart.
Comment:
Here is the 1 hr chart showing the long entry setup. Pay attention to the invalidation numbers. What is nice, is if BTC drops, you can enter with a small Stop of 1 or 2% . So small loss for being wrong. Just put it below the invalidation line.
Comment:
If you did not understand what I meant by BTC could be putting in a huge corrective structure, this chart will show what I mean. I show how TOTAL and BTC both could be huge corrective structures forming. Meaning, once completed, we get another bear market. If you are aware that the treasure yield curves inverted 12 months ago, then you should understand that this is an indicator of market crashes and recessions. In past history, the crash or recessions started anywhere from immediate to 18 months after the inversion. Well, the current inversion occurred 12 months ago. Tick tock.
