Wave 5 soon completed. Major correction incoming?
Welcome to my next analysis for BTC using elliott waves.
Currently we are in wave 5 of a superior wave 1 and in 2 different reversal patterns (Rising wedge (red) and ending diagonal triangle of wave 5 (blue))
The internal structure of ending diagonal triangle is 3-3-3-3-3 (3=abc). Up until now it is given but still need more confirmation. Currently I am looking if wave 3 of this EDT is completed and if we are in wave 4 of EDT. The fact that we almost reached 0.618 of trendbased Fib extension of wave 1-3 and PI cycle top indicator indicates that we reached a top, might support the assumption of wave 3 completed. Therefore wave 4 of EDT would need to drop to around 59k where the dynamic support line of rising wedge is and then rebounce to around 62k before falling down to around 56k where the dynamic support line of EDT is and completing wave 4 of EDT. In timeline I would expect this to happen from today to Monday or Tuesday.
Wave 5 of EDT has to surpass at least ATH otherwise it would be a failure if it corrects at least 70% of Wave 4 of EDT. I would expect this to happen on Tuesday/wednesday - Saturday/Sunday next week. A failure will initiate a trend reversal and if wave 5 gets rejected at 65k reversal is confirmed when crossing dynamic support line of EDT (blue)
One thesis that supports this assumption is that in a bulltrend weekends were mostly bullish and Mondays were more bearish, with a bullish sentiment again on 2nd half of weeks.
If reversal of trend is confirmed we might expect a big correction of superior impulse wave 1 and enter superior correction wave 2. It should correct at least 20% and less than 61.82%. Common is 50%. (Range visible with Fib. Retracement). In red I have marked a potential outcome of superior correction wave 2 with its subwaves but that's just guessing. There are different patterns for correction waves.
Carefulness is adviced. At the moment anything can happen.
I wish you all good luck with your goals.
(No financial advice)
Currently we are in wave 5 of a superior wave 1 and in 2 different reversal patterns (Rising wedge (red) and ending diagonal triangle of wave 5 (blue))
The internal structure of ending diagonal triangle is 3-3-3-3-3 (3=abc). Up until now it is given but still need more confirmation. Currently I am looking if wave 3 of this EDT is completed and if we are in wave 4 of EDT. The fact that we almost reached 0.618 of trendbased Fib extension of wave 1-3 and PI cycle top indicator indicates that we reached a top, might support the assumption of wave 3 completed. Therefore wave 4 of EDT would need to drop to around 59k where the dynamic support line of rising wedge is and then rebounce to around 62k before falling down to around 56k where the dynamic support line of EDT is and completing wave 4 of EDT. In timeline I would expect this to happen from today to Monday or Tuesday.
Wave 5 of EDT has to surpass at least ATH otherwise it would be a failure if it corrects at least 70% of Wave 4 of EDT. I would expect this to happen on Tuesday/wednesday - Saturday/Sunday next week. A failure will initiate a trend reversal and if wave 5 gets rejected at 65k reversal is confirmed when crossing dynamic support line of EDT (blue)
One thesis that supports this assumption is that in a bulltrend weekends were mostly bullish and Mondays were more bearish, with a bullish sentiment again on 2nd half of weeks.
If reversal of trend is confirmed we might expect a big correction of superior impulse wave 1 and enter superior correction wave 2. It should correct at least 20% and less than 61.82%. Common is 50%. (Range visible with Fib. Retracement). In red I have marked a potential outcome of superior correction wave 2 with its subwaves but that's just guessing. There are different patterns for correction waves.
Carefulness is adviced. At the moment anything can happen.
I wish you all good luck with your goals.
(No financial advice)