Whats going on guys?
I am seeing all kinds of crazy predictions on what BTC next target is and they make absolutely no sense!
So what I will be sharing with you guys is my predictions based on indicators and EW theory not just some blasphemy.
(I will be going into detail)
So here we are on the 4hr taking a look at BTCUSD and we can see that we have completed 4 waves thus far. Now counting waves is probably the most trickiest thing in Elliot wave theory, so what I personally do to double check my wave count is make sure that the subwaves meet the requirements of Fib Extension tool.
What does EW tell us?
Subwaves 1 (Inside of primary wave 1)
When I took a fib extension tool from 1-2 I hit wave 3 with a 1:1 extension and wave 5 with a 1.618 (That is literally a textbook play)
Subwaves 2 (Inside of primary wave 2)
When I took a fib extension from 1-2 I hit a 1:1 extension to wave 3 and wave 5 was a 1:1 extension of 3-4
Primary Wave 1-2 ( The big main waves )
If you take a fib extension from 1-2 you hit 3 exactly with a 1:1 extension! This indicates that we can hit wave 5 with a 1.618.
In addition to prove my count, the law of indifference is a rule in EW that states if wave 1-2 retraces heavily than wave 3-4 will not retrace as much and vice versa. We can see wave 1-2 retraces about 30% and wave 3-4 has retraced about 85% so this meets that rule.
Sidenote: On may 7th I had this count and I said that we would retrace at the $8500 dollar range (Twitter)
What does RSI tell us?
We are making lower highs on the RSI which is classic bearish divergence.
The next lower high we make will give us wave 5
What does the MACD tell us?
We are making lower highs on the RSI which is classic bearish divergence.
What happens next?
I am expecting one more wave upwards to the 1.618 and then a retrace.
Now as traders we have to make sure that we manage our position, so this can change at any moment. So I will keep this updated!
Thanks for reading!
Ya boy
CoinMasterFlexx
I am seeing all kinds of crazy predictions on what BTC next target is and they make absolutely no sense!
So what I will be sharing with you guys is my predictions based on indicators and EW theory not just some blasphemy.
(I will be going into detail)
So here we are on the 4hr taking a look at BTCUSD and we can see that we have completed 4 waves thus far. Now counting waves is probably the most trickiest thing in Elliot wave theory, so what I personally do to double check my wave count is make sure that the subwaves meet the requirements of Fib Extension tool.
What does EW tell us?
Subwaves 1 (Inside of primary wave 1)
When I took a fib extension tool from 1-2 I hit wave 3 with a 1:1 extension and wave 5 with a 1.618 (That is literally a textbook play)
Subwaves 2 (Inside of primary wave 2)
When I took a fib extension from 1-2 I hit a 1:1 extension to wave 3 and wave 5 was a 1:1 extension of 3-4
Primary Wave 1-2 ( The big main waves )
If you take a fib extension from 1-2 you hit 3 exactly with a 1:1 extension! This indicates that we can hit wave 5 with a 1.618.
In addition to prove my count, the law of indifference is a rule in EW that states if wave 1-2 retraces heavily than wave 3-4 will not retrace as much and vice versa. We can see wave 1-2 retraces about 30% and wave 3-4 has retraced about 85% so this meets that rule.
Sidenote: On may 7th I had this count and I said that we would retrace at the $8500 dollar range (Twitter)
What does RSI tell us?
We are making lower highs on the RSI which is classic bearish divergence.
The next lower high we make will give us wave 5
What does the MACD tell us?
We are making lower highs on the RSI which is classic bearish divergence.
What happens next?
I am expecting one more wave upwards to the 1.618 and then a retrace.
Now as traders we have to make sure that we manage our position, so this can change at any moment. So I will keep this updated!
Thanks for reading!
Ya boy
CoinMasterFlexx