Hi traders!
Today we are going to look at ETH/USD analysis on Bitfinex. ETH is now undertaking soft correction as well as all the other altcoins. However, where could the correction come to an end?
Trading is a game of probability and statistics and therefore we are going to introduce you to 2 possible scenarios and going to assign them a % chance to achieve success. Let’s begin.
Scenario nb. 1
We are in the B wave now, which is taking beautiful triangle shape. The triangle formation is characteristic in a way that there’s the last move in the given direction after it. It’s mostly in the 4th wave and there’s always the 5th wave after it. Speaking about correction waves, it’s always after B wave and yet there’s always C wave after it. In this annotation, we would take the triangle height as a target. To manage bounce-zone more accurately, we move the triangle height both to upper and lower triangle trendline. Now we have potentially reverse zone for the graph to bend back. In our case it's the price level of 239 - 265 USD. That's where the C wave should end and bounce.
Probability - 70%
Scenario nb. 2
In this scenario, we simulate a less probable option - we would break the triangle upwards. It's less probable, but it sometimes happens. In such a case the whole correction would be finished in C point in the triangle. It wouldn't even be a triangle formation but rather a classic ABC correction. In the moment, we would finish the 1st wave. That's an alternative scenario.
Probability - 30%
Summary
ETH doesn't look bad and its correction won't bring new bottom, or any fatal price decrease. The correction appears totally healthy and we can expect new growth by several days, maybe weeks. Some other big altcoins look alike.
Today we are going to look at ETH/USD analysis on Bitfinex. ETH is now undertaking soft correction as well as all the other altcoins. However, where could the correction come to an end?
Trading is a game of probability and statistics and therefore we are going to introduce you to 2 possible scenarios and going to assign them a % chance to achieve success. Let’s begin.
Scenario nb. 1
We are in the B wave now, which is taking beautiful triangle shape. The triangle formation is characteristic in a way that there’s the last move in the given direction after it. It’s mostly in the 4th wave and there’s always the 5th wave after it. Speaking about correction waves, it’s always after B wave and yet there’s always C wave after it. In this annotation, we would take the triangle height as a target. To manage bounce-zone more accurately, we move the triangle height both to upper and lower triangle trendline. Now we have potentially reverse zone for the graph to bend back. In our case it's the price level of 239 - 265 USD. That's where the C wave should end and bounce.
Probability - 70%
Scenario nb. 2
In this scenario, we simulate a less probable option - we would break the triangle upwards. It's less probable, but it sometimes happens. In such a case the whole correction would be finished in C point in the triangle. It wouldn't even be a triangle formation but rather a classic ABC correction. In the moment, we would finish the 1st wave. That's an alternative scenario.
Probability - 30%
Summary
ETH doesn't look bad and its correction won't bring new bottom, or any fatal price decrease. The correction appears totally healthy and we can expect new growth by several days, maybe weeks. Some other big altcoins look alike.