Over the next month or two I believe things will get much clearer. You can view things two ways at the moment. We either just completed an ABC correction and are starting another impulse down for a bearish view(in blue) or we are in a B wave of wave 3 for a bullish view (in black).
There are other possibilities as well such as double top or even expanding flat but I believe these two scenarios in blue and black are most probable based on the fib time extension of wave A of 3. The correction is due to end between OCT 4 and NOV 2. While this is crypto and it would be possible for price to test the previous highs around 12k and then come back down to 8-9k range in less than a month, I don't believe it will.
I don't expect much more upside in the near term. All signs to me point to a decline in price between 8k-9k (Green Area). This is the 50%-61.8% retracement of wave A of 3(if we assume 5 wave uptrend). This should occur over the next few weeks. There will be a reversal in this range and a rally will follow.
The question will then be answered, around election time, coincidentally, which direction we will go. If price pushes and closes beyond 10.5k area(This should be around the 61.8%-78.6% retracement from 12.4k-8-9k), this would confirm we are in fact in the second half of wave 3 heading towards 19k-28k(Red Area). However if price stalls and fails to push above 10.5k we could see a big drop down to new lows.
$8100 is a critical support point for the uptrend structure. A break below his level will create an extremely bearish forecast for months to come. Either way there should be a bounce between 8-9k. Placing buy orders in this range with a stop loss at 8100 should provide a short term low risk opportunity with big profit potential all the way to 10.5K. If that level breaks profits would be even larger riding the entire second half of wave 3.
The 10.5 area is a very important level and even though bulls should temporarily lose it for a month or so there should be one last battle in November to determine if the uptrend can continue.
There are other possibilities as well such as double top or even expanding flat but I believe these two scenarios in blue and black are most probable based on the fib time extension of wave A of 3. The correction is due to end between OCT 4 and NOV 2. While this is crypto and it would be possible for price to test the previous highs around 12k and then come back down to 8-9k range in less than a month, I don't believe it will.
I don't expect much more upside in the near term. All signs to me point to a decline in price between 8k-9k (Green Area). This is the 50%-61.8% retracement of wave A of 3(if we assume 5 wave uptrend). This should occur over the next few weeks. There will be a reversal in this range and a rally will follow.
The question will then be answered, around election time, coincidentally, which direction we will go. If price pushes and closes beyond 10.5k area(This should be around the 61.8%-78.6% retracement from 12.4k-8-9k), this would confirm we are in fact in the second half of wave 3 heading towards 19k-28k(Red Area). However if price stalls and fails to push above 10.5k we could see a big drop down to new lows.
$8100 is a critical support point for the uptrend structure. A break below his level will create an extremely bearish forecast for months to come. Either way there should be a bounce between 8-9k. Placing buy orders in this range with a stop loss at 8100 should provide a short term low risk opportunity with big profit potential all the way to 10.5K. If that level breaks profits would be even larger riding the entire second half of wave 3.
The 10.5 area is a very important level and even though bulls should temporarily lose it for a month or so there should be one last battle in November to determine if the uptrend can continue.