There seems to be a clear Elliott 5 subwave path to $7450. It could be part of a larger wave to $8400
The recent run down from $8400 down to $5850 did not go below the earlier low of $5750, which seems to imply the possibility that from $5750 to $8400 was a wave 1, from $8400 to $5850 was a wave 2, and now we are on a wave 3.
If you zoom out, the current wave structure of 2018 looks suspiciously like a Wyckoff accumulation chart, where we are in phase C and in the "test" part after the "spring": d.stockcharts.com/sc...koffaccumulation.png
If so, this dip down to $5850 felt exactly like a "test": to test the $5750 bottom. This is my optimistic view. There are many experienced analysts who feel that BTC is headed below $5000, and the long-term trend lines seem to support this. The test will be whether we break the long-term trend lines I've drawn in purple, and breaking previous highs. Breaking $8400 will be the signal that we have finally broken free of the long-term wedge that is driving us to $5000.
It's worth noting that the weekly MACD has crossed over to the bull for the first time in 2018. Some people will note that this happened also in 2014 which preceded another crash down, but the charts in 2014 and 2018 are not alike at all. In 2018 we were clearly in a descending wedge pattern, which was not the case in 2014. I think the daily RSI/MACD and Weekly RSI/MACD support a strong possibility of the Elliott wave pattern I've drawn and the possibility that we are in phase C of the Wyckoff Accumulation chart.
The recent run down from $8400 down to $5850 did not go below the earlier low of $5750, which seems to imply the possibility that from $5750 to $8400 was a wave 1, from $8400 to $5850 was a wave 2, and now we are on a wave 3.
If you zoom out, the current wave structure of 2018 looks suspiciously like a Wyckoff accumulation chart, where we are in phase C and in the "test" part after the "spring": d.stockcharts.com/sc...koffaccumulation.png
If so, this dip down to $5850 felt exactly like a "test": to test the $5750 bottom. This is my optimistic view. There are many experienced analysts who feel that BTC is headed below $5000, and the long-term trend lines seem to support this. The test will be whether we break the long-term trend lines I've drawn in purple, and breaking previous highs. Breaking $8400 will be the signal that we have finally broken free of the long-term wedge that is driving us to $5000.
It's worth noting that the weekly MACD has crossed over to the bull for the first time in 2018. Some people will note that this happened also in 2014 which preceded another crash down, but the charts in 2014 and 2018 are not alike at all. In 2018 we were clearly in a descending wedge pattern, which was not the case in 2014. I think the daily RSI/MACD and Weekly RSI/MACD support a strong possibility of the Elliott wave pattern I've drawn and the possibility that we are in phase C of the Wyckoff Accumulation chart.