This idea will present multiple aspects of what BTC price action is doing. Each aspect will be broken down in different snapshots so that at the end we have a understanding of the greater picture.
Elliot Wave & Fibonacci
The assumption is that each correction wave will bounce from the 0.5 0.618 Fibonacci levels. The levels should have confluence with previous highs so that resistance turns support.
Wave 1 stopped just above the 0.618 level.
Wave 2 stopped just bellow 0.5 level.
Wave 3 stopped just above level 2.
Wave 4 should stop just above ~52.9k
Confluence with Fibonacci levels from Point 0 to 3 waves.
So a good approach for the current PA would be to accumulate in the green zone between ~57.7k and ~53k.
Wave 5 should reach at least the 1.618 level at around 87k.
Level 2 would be between 98k and 100k.
Log Trendline
Support is now resistance.
Locally
We are forming a rising wedge with a RSI and MACD bearish divergence. I've also plotted a channel that interestingly has the bottom support in confluence with wave 3 high.
Question is what will BTC do at the bottom of the channel and if we make a higher high or a lower confirmation high that will take us to the accumulation zone ?
One scenario is that we could form a H&S that as usually will probably underperform and instead of reaching the target will bounce from the accumulation zone.
I will post ideas related to this on lower time frames like 4H and 1H to look for confluence.
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Bull div on MACD and RSI, looks like we getting a bounce
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In the buy area, might not get a better chance
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What now ? Sideways consolidation shake & bake ?
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bottom is in
Trade closed manually
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Wave 5 canceled we break 39.6k bear market confirmed.
Hi bro, I thought that Fibonacci extension should be used for Elliot waves and i saw wave 3 is lower level 2 ( fibonacci 1.618 ) and wave 5 will be at $99900. Really confuse between Fibo retracement and Extension in this one. Thanks bro
CryptoSlots777
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@Blackjackdz, Could you provide more details, maybe even a screen shot ?
@Blackjackdz, this looks almost identical to my setup, not sure what you point is.
Blackjackdz
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@CryptoSlots777, i meant that wave 3 didnt reach fibonacci 1.618 if you use fibonacci extension , when you switch between the 2 type of Fibonacci the target profit will change pretty much and this could impact on our trade based on the theory of Elliot waves ( i dont think it is "identical" ). How do you think ? what Fibo should we use for Elliot wave?