- ONTBTC recently broke out of a channel (blue) after making a full 5 wave up in this channel/timeframe (degree) and is now in a new (purple).
If we look at the EW of the correction, then we could count a 5, 3, 5 wave structure. If this is correct then we should expect a new impulse wave or at least a little bounce from here.
- The retracement has reached past the .50 fib level and is very close to the .618 - .65 fib level, which is usually where buyers come in.
- Also, you see a divergence in the and which indicates a weakening of the bearishness.
Must say that at the current market sentiment it's hard(er) to go for a or recovery scenario cause there's still much uncertainty so be cautious and wait for more confirmation, change in sentiment or go for smaller size when trading for short-term gains.
But if we do get a recovery from this point on, then you can use the above projection as a guideline.
Leave a comment if you have any questions.
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And until next time, good luck with your trading!