My estimations of the top of Wave 5 yesterday proved accurate, but my estimation of where the correction wave would end, at 0.30164 ended up being not conservative enough as the price fell to the 0.618 retracement point at 0.28617.
Part of this move lower was due to the significant spike down by Bitcoin which appears to have tanked the whole market.
Technically speaking the larger degree Wave 2 can go down to the start of Wave 1, and in fact, from a theory point of view at least, Wave 2 coming from a reversal is expected to dip lower in the so-called denial stage.
So, where does that leave us...
I am seeing indications of the larger degree Wave 2 ending here. We could count the drop as a 12345 structure after it broke through the triangle.
Look for a break above the upper trendline that formed the triangle to signal an upward continuation with confirmation above Wave 5. In contrast, any movement below 0.262 would invalidate the whole count and would we would have to start over again.
Keep in mind, the Monthly Pivot is sitting there at 0.27170. That could very well provide the ultimate support before the next wave up.
Part of this move lower was due to the significant spike down by Bitcoin which appears to have tanked the whole market.
Technically speaking the larger degree Wave 2 can go down to the start of Wave 1, and in fact, from a theory point of view at least, Wave 2 coming from a reversal is expected to dip lower in the so-called denial stage.
So, where does that leave us...
I am seeing indications of the larger degree Wave 2 ending here. We could count the drop as a 12345 structure after it broke through the triangle.
Look for a break above the upper trendline that formed the triangle to signal an upward continuation with confirmation above Wave 5. In contrast, any movement below 0.262 would invalidate the whole count and would we would have to start over again.
Keep in mind, the Monthly Pivot is sitting there at 0.27170. That could very well provide the ultimate support before the next wave up.
Comment:
My analysis of the correction bottom earlier this morning is playing out...
Comment:
Bitcoins $600 drop blocked the recovery I was seeing. I am not sure at this point if its just a delay or if were looking at 0.25 again.
There is significant weakness and its entirely possible we are looking at the monthly pivot at 0.27 if not 0.25.
There is significant weakness and its entirely possible we are looking at the monthly pivot at 0.27 if not 0.25.
