BTC - Coming to a target near you!
Ladies and gents... BTC is stacking up with all the right indicators tipping but has not tipped towards a bullish run, at least not yet. Over the long haul, the daily chart speaks to us with the Elliot Wave Theory (EWT), Fib Retracement Levels and the largest active pattern on the board - the Inverted Head and Shoulders (H&S) all coming NSYNC and not the boy band either. Targets are marked in light red to help identify where bull runs and pullbacks will occur in the coming days, weeks and months.
1) The further we get on the Elliot Wave Theory for BTC, the larger the target widow becomes. The recent pullback signals BTC's entry into Wave 2 and statistically, Wave 2 retraces between 50-60% of Wave 1, 73% of the time (see templated target). All targets are templated in locations that are statistically the most likely. Of course things happen so use these as a guide rather than Stone-Cold facts and not the wrestler either.
2) Notice that the targets and the pivot points of the EWT all end on or near a fib level. The interesting thing is this becomes more apparent when you add two of the less common fibs at .191 and .889.
3) Last but not least, there is a smaller H&S pattern developing which will likely trigger the drop in price action to the templated target at the completion of Wave 2. On a larger scale, if this happens, in all likeliness, the completing of the right shoulder of the inverted H&S will very much be in play. Measuring the head to the neckline and templating this at the breakout, the price action, if following this pattern, will likely terminate Wave 3 at the convergence of the (a) .889 fib level, (b) the inverted H&S projection and (c) the EWT's projection of Wave 3 = to between 1.6 x Wave 1 and 1.75 x Wave 1 approximately 45% of the time (highest of the theory's options for Wave 3).
For Wave 4 and 5, projection will come as we get closer to the objective!
Best of luck in your trading endeavors
1) The further we get on the Elliot Wave Theory for BTC, the larger the target widow becomes. The recent pullback signals BTC's entry into Wave 2 and statistically, Wave 2 retraces between 50-60% of Wave 1, 73% of the time (see templated target). All targets are templated in locations that are statistically the most likely. Of course things happen so use these as a guide rather than Stone-Cold facts and not the wrestler either.
2) Notice that the targets and the pivot points of the EWT all end on or near a fib level. The interesting thing is this becomes more apparent when you add two of the less common fibs at .191 and .889.
3) Last but not least, there is a smaller H&S pattern developing which will likely trigger the drop in price action to the templated target at the completion of Wave 2. On a larger scale, if this happens, in all likeliness, the completing of the right shoulder of the inverted H&S will very much be in play. Measuring the head to the neckline and templating this at the breakout, the price action, if following this pattern, will likely terminate Wave 3 at the convergence of the (a) .889 fib level, (b) the inverted H&S projection and (c) the EWT's projection of Wave 3 = to between 1.6 x Wave 1 and 1.75 x Wave 1 approximately 45% of the time (highest of the theory's options for Wave 3).
For Wave 4 and 5, projection will come as we get closer to the objective!
Best of luck in your trading endeavors
Trade active:
Back in business. BTC hit our target yesterday and is trending North. It has also broken above the downward trend line dating back to the all time high. Now its semi-safe to take a partial position to go long. The 11.8K is the trigger to go for it all.
This is sort of, kind of, still an active trade. This is the daily chart view and offers more perspective / grander view. If you are a buy and hold person, this trade and targets are still very much in play.
Lets look at the nuances of it all:
1) Wave 1 closed as indicated but Wave 2 traded sideways first and now is on its decline to the target area as labeled. Because of the initial move sideways, expect the price action to end at or near the top of the target and essentially just widening out the right shoulder (must be right hand dominate).
2) While not mentioned in this post but it has been in others, BTC on the daily chart is creating a mirror effect with the center point being at the tip of the head of the inverted H&S. Looking closer, the left shoulder has two humps with the inner shoulder being the smaller of the two. The right side seems to be forming a similar shape but just in the inverse.
3) Look for BTC to bounce at the 0.023 Fibonacci starting the 3rd Wave and confirm the H&S with breakout.
4) Because the 2nd Wave is trading flat, look for a steep pullback after the 3 Wave completes. Be prepared to protect your gains at the inverted H&S target.
-Happy Trading