The resistance target I presented in my last analysis proved accurate at 0.38 with price hitting 0.376 on Bitstamp before the retrace.
The correction has been pretty deep, but EW theory suggests that it is not uncommon for Wave 2 of the higher degree to retrace well beyond the normal 0.382 fib. In this case it has retraced to the 0.764 retrace of the higher degree Wave 1. With the 0.32-33 level providing resistance and now being broken, this should prove to be decent support. In addition we can see the 1H RSI @ 30, with the 1D and 4H out of overbought territory. Assuming that the 0.32-33 level will provide support, this would present a Flat ABC correction wave.
The target for the next impulse series would be 0.39301, the 1.0 fib ext of the higher degree Wave 1. If it extends to the 1.272 we would be looking at 0.41096.
The correction has been pretty deep, but EW theory suggests that it is not uncommon for Wave 2 of the higher degree to retrace well beyond the normal 0.382 fib. In this case it has retraced to the 0.764 retrace of the higher degree Wave 1. With the 0.32-33 level providing resistance and now being broken, this should prove to be decent support. In addition we can see the 1H RSI @ 30, with the 1D and 4H out of overbought territory. Assuming that the 0.32-33 level will provide support, this would present a Flat ABC correction wave.
The target for the next impulse series would be 0.39301, the 1.0 fib ext of the higher degree Wave 1. If it extends to the 1.272 we would be looking at 0.41096.
