Hey all, so the (5) waves played out downwards as expected and we ended up with a beautiful reversal from the low of wave (5) at 28800 (BTCUSDT Binance).
From here on I think the trend will be bullish with a minimum target of 40k that I think is a pessimistic turning point for the market.
There are two major downward sloping trend lines that need to be broken if we are going to see prices over 40k.
A more bullish estimate would be that Bitcoin will head to the 0.618 retracement at 48k, but many levels need
to be broken to achieve this.
Reasons why I believe we have bottomed are:
1) The (5) waves have completed down and formed in a textbook way with wave (5) being slightly longer, but almost equal to, the length of wave (1). This is exactly what is laid out in the Elliott Wave Principle.
2) There is extremely high volume at the end of wave (5) indicating that many longs entered and shorts got out. The volume peak at the end of wave (5) is lower than the peak during wave (3). This
is common for when the 5th wave has ended and is a good indication we will now be moving upwards.
3) We should now be entering an ABC correction to upside.
How will I play this?
I got long on Ethereum when Bitcoin hit around 30k, so I am holding at the moment and will look to take some profit when bitcoin hits 40k and then hold more for when it hopefully hits 48k.
Depending on how price reacts to these resistances (the downward sloping trend lines) I will look to take action,
but for now I am just holding my long.
How can someone who is not in the market yet play this?
If you're not in the market yet then wait for pullbacks and scale in gradually as we should be bouncing up pretty
strongly soon.
(This is not financial advice and you are responsible for any gains and losses. I am just posting this to
provide food for thought for investors).
Good luck have fun guys!
From here on I think the trend will be bullish with a minimum target of 40k that I think is a pessimistic turning point for the market.
There are two major downward sloping trend lines that need to be broken if we are going to see prices over 40k.
A more bullish estimate would be that Bitcoin will head to the 0.618 retracement at 48k, but many levels need
to be broken to achieve this.
Reasons why I believe we have bottomed are:
1) The (5) waves have completed down and formed in a textbook way with wave (5) being slightly longer, but almost equal to, the length of wave (1). This is exactly what is laid out in the Elliott Wave Principle.
2) There is extremely high volume at the end of wave (5) indicating that many longs entered and shorts got out. The volume peak at the end of wave (5) is lower than the peak during wave (3). This
is common for when the 5th wave has ended and is a good indication we will now be moving upwards.
3) We should now be entering an ABC correction to upside.
How will I play this?
I got long on Ethereum when Bitcoin hit around 30k, so I am holding at the moment and will look to take some profit when bitcoin hits 40k and then hold more for when it hopefully hits 48k.
Depending on how price reacts to these resistances (the downward sloping trend lines) I will look to take action,
but for now I am just holding my long.
How can someone who is not in the market yet play this?
If you're not in the market yet then wait for pullbacks and scale in gradually as we should be bouncing up pretty
strongly soon.
(This is not financial advice and you are responsible for any gains and losses. I am just posting this to
provide food for thought for investors).
Good luck have fun guys!
I am adding more to my long positions as the price drops. Personally, I will be buying more Ethereum and Shiba Inu, but pretty much any crypto you buy will likely go up over the next few weeks.
(Not financial advice, all gains and losses are credit of your decisions)
All the best, good luck!