BTCUSDT - Throwover on a long term channel with falling volume
The channel is based on the logarithmic scale to see the over all context. The rally since the bottom of Wave 2 circle appears to be topping and here are the reasons to believe it so
1. The recent evidence is a throw over the upper channel line. It does suggest that any upside from here should be for short period.
2. The structure of Wave 3 can also be sub-divided in 5 Waves for which I have pointed out in various earlier posts.
3. The recent volume activity in on decline which indicates where the smart money is moving.
Once the topping process completes then a larger Wave 4 correction will take prices in a sideways consolidation pattern. An ideal target for Wave 4 bottom would be in mid 1000s. It could potentially take 6-8 months to reach that target.
Caveat:
This analysis is based on the price history available.
Elliot Waves is an effective tool for a market forecasting, should not be considered as a holy grail. It's easier to label the wave in hindsight however the future patterns can evolve as highly complex.
This is not a financial advice and I am not responsible for any loss you make on your investment.
1. The recent evidence is a throw over the upper channel line. It does suggest that any upside from here should be for short period.
2. The structure of Wave 3 can also be sub-divided in 5 Waves for which I have pointed out in various earlier posts.
3. The recent volume activity in on decline which indicates where the smart money is moving.
Once the topping process completes then a larger Wave 4 correction will take prices in a sideways consolidation pattern. An ideal target for Wave 4 bottom would be in mid 1000s. It could potentially take 6-8 months to reach that target.
Caveat:
This analysis is based on the price history available.
Elliot Waves is an effective tool for a market forecasting, should not be considered as a holy grail. It's easier to label the wave in hindsight however the future patterns can evolve as highly complex.
This is not a financial advice and I am not responsible for any loss you make on your investment.
Here is the short term wave structure.