Bitcoin - Wyckoff and Elliott description of current correction
I wanted to create a Wyckoff and Elliott wave based description of the current correction that has been lasting nearly 3 months now.
During the beginning of the correction we have seen a Three Falling Peaks pattern which created a strong supply line.
Three falling peaks acts as a reversal at the end of an uptrend.
The strong supply line created by the 3FP's has eventually pushed the price below the ice in phase D.
If bulls can not regain price above the ice then we might fall deeper into the river.
Currently Bitcoin has corrected down to the fourth wave of one lesser degree.
This could be creating a Spring opportunity as a potential end of a WXY.
It would seem the correction started with a Flat (3-3-5) leading into a "Any Three ABC" followed by what I assume is a Zig Zag pattern.
Many didnt believe the first ABC to be a flat because the B leg didnt retrace 90% of the A leg.
A break back above $9350 signals a good Long position
Falling below $7500 would give a good Short position.
Current sentiment is cautious.
Phase E should begin soon to reveal if the correction is over or if distribution continues.
During the beginning of the correction we have seen a Three Falling Peaks pattern which created a strong supply line.
Three falling peaks acts as a reversal at the end of an uptrend.
The strong supply line created by the 3FP's has eventually pushed the price below the ice in phase D.
If bulls can not regain price above the ice then we might fall deeper into the river.
Currently Bitcoin has corrected down to the fourth wave of one lesser degree.
This could be creating a Spring opportunity as a potential end of a WXY.
It would seem the correction started with a Flat (3-3-5) leading into a "Any Three ABC" followed by what I assume is a Zig Zag pattern.
Many didnt believe the first ABC to be a flat because the B leg didnt retrace 90% of the A leg.
A break back above $9350 signals a good Long position
Falling below $7500 would give a good Short position.
Current sentiment is cautious.
Phase E should begin soon to reveal if the correction is over or if distribution continues.
