Elliot Wave is about the psychology in the market
I clearly understand that currently the price is still trending slightly below the strong resistance zone which is the area of golden pocket zone and the interim swing high at June 2019. A lot of people are too pessimistic that the price won't break this resistance in the future and we may face another sharp decline. This thought however is not wrong at all, it can be right. But, as a trader we have to always analyze the chart with a high level of objectivity and always consider the psychological factor in the market too. That's why it's very important to understand very well the Elliot wave and its component. Now, I don't need any other indicator that can only make a dirt on your analysis, all I want to do is to labelling the wave count as objective as I can and make a projection to the future.
Based on current structure, the price has moved parabolic to the upside since it touched the bottom line of 2020 at around $3800 region. However, I still think that this parabolic moves to test the $14000 region is still a normal behavior from the price. We have seen some healthy correction and some huge impulse showing that the whole stakeholders are having the positive sentiment since the price touched the bottom line. That's why at this condition when we saw several rejections toward the resistance trend line, the price always ended up bouncing up again and again. Looking at this condition, we know that the positive sentiment has made most of the traders feeling good and confidence to enter the market at every dip occurred.
Based on my EW count and labelling structure, I still see the possible upside moves as we are now at the sub wave 3 of the third wave on grand cycle. A retracement may occurs in the short term but it won't be too low like what most of the traders projected. Maximum $12700 - $12400 could be the ideal place to see if we see 1 more drop. For the future projection, I still see the challenge of ATH is still in play as it has an alignment with the 1.618 fibonacci extension as where the 5 wave structure mostly like to ends.
Based on current structure, the price has moved parabolic to the upside since it touched the bottom line of 2020 at around $3800 region. However, I still think that this parabolic moves to test the $14000 region is still a normal behavior from the price. We have seen some healthy correction and some huge impulse showing that the whole stakeholders are having the positive sentiment since the price touched the bottom line. That's why at this condition when we saw several rejections toward the resistance trend line, the price always ended up bouncing up again and again. Looking at this condition, we know that the positive sentiment has made most of the traders feeling good and confidence to enter the market at every dip occurred.
Based on my EW count and labelling structure, I still see the possible upside moves as we are now at the sub wave 3 of the third wave on grand cycle. A retracement may occurs in the short term but it won't be too low like what most of the traders projected. Maximum $12700 - $12400 could be the ideal place to see if we see 1 more drop. For the future projection, I still see the challenge of ATH is still in play as it has an alignment with the 1.618 fibonacci extension as where the 5 wave structure mostly like to ends.
