Bitcoin is yet to reach a top, here’s whyHello Traders! Welcome to today’s analysis on bitcoin, I hope you’re doing good
From our last analysis on bitcoin, we tried to forecast a downtrend which didn’t quite play out because our wave c fib ratio exceeded 1.236 ideal extension for a wave c, which gave us more insight that what we called a wave c earlier is an extended wave 3, that was why I updated the idea with a note “trade closed manually” few hours later
So, where are we now?
Wave 3 gave an extension beyond 2.618 fib extension level which is the usual for btc, and that leads to a truncated 5th most times.
We saw a massive rejection very close to 20k region down to lower 18k, in wave 4, and the current structure may lead to a truncated 5th. Usually with truncated 5th, we have a long-term consolidation in wave 4 forming ABC corrective structure. Having a closer look at smaller timeframe, wave 4 seems to be forming a flat correction.
What is a flat correction?
Flat correction is one of the simplest corrective structures with 3 wave structure labelled ABC. The difference between a flat and zig zag correction is the amount of sub waves. While flat correction gives a smaller 11 sub-waves, zig zag gives 13 smaller sub-waves. The usual convention for a flat correction is 3-3-5 ABC waves
In this case, we had 3 waves complex correction in a, and waiting for the 3rd sub-waves in b to be completed before the final push downward in form of a wave c. The ending point of the last sub-wave in b will determine what kind of flat we get, if we close around the last high close to 20k, we’d call it a regular flat. If we close above 20k, then we’d call it an extended flat.
We can expect some rejection around 20k or slightly higher to complete wave c of the flat correction. If otherwise, I’ll post an update on that.
Conclusion: usually truncated 5th comes with a lot of scalping opportunities because of quick swings back and forth, just don’t get caught in the middle. We won’t be holding our positions for long we’ll be scalping the waves along.
If you’re don’t like scalping and you got an entry in mid 18k you can leave it open till we break above 20k. I’m forecasting mid 20k as the ending point for the truncated 5th, let’s see how things play out.
This is a very detailed analysis which could play out throughout the week or maybe more, I hope you get the idea.
I’ll stop here for now and update you more as the structure unfolds.
Trade setup: we entered a long trade below 18k, and we’ll exit the trade around 20k region before the next swing down.
If you enjoyed this analysis, don’t forget to hit the like button, subscribe to this channel to get latest updates and signals on bitcoin.
Don’t forget to share your charts, questions and contributions with the community in the comment section below.
Donations via Trading View coins also helps me at posting more free trading content and signals here.
Thanks for your continued support as always
Trade Responsibly.
I’ll see you all shortly
Have a great week traders!
Thank you
Nueel_classic
