Full disclosure, I have a small amount of BTCUSD on Coinbase and I am in the red. So I am not necessarily the best person to follow when it comes to Crypto.
That said, I do believe that humans and computers have aligned and the BTCUSD is trading very textbook in terms of technicals.
Early adopters took BTCUSD from $0 to nearly $70,000 which in anyone's book is an impulsive move, and in other people's book a classic pump and dump.
When we're talking penny stocks this chart I believe would go to $0. But we're talking about an asset that has Institutional Money involved. Even the wealth of small countries.
I have used Elliot Wave to denote where I believe the BTCUSD has been and will go in the future.
Green waves 1-5, a classic impulsive move.
Red waves ABC, classic corrective 3 waves move lower.
The original range that I am working with starts with what I consider the first major pullback. Green 1 to 2.
Recently the BTCUSD had been consolidating at the top of that range around the $20k mark. Recent events in crypto land have flushed out more holders as FTX loses liquidity and Binance steps aside from doing anything to help.
Looking back to late 2020 price broke out of the range and left an area of imbalance. Institutional algos do not like being left on the sidelines. So they wait patiently with their orders and use their algo to push price lower (in this case). News and fundamental events accelerate prices to wherever the money wants the price to go. Adding some fear along the way is good business.
If we are in a corrective move, rather than a waterfall to $0, Wave A could = Wave B~C and that takes us to the Mid Range / Lower Imbalance line. Which would be a very neat trick.
I have also used an Andrews Pitchfork to indicate where the price could land. As the original range expanded by nearly 4x, I have used the 4th deviation on the Pitchfork too. This intersects the Mid Range / Lower Imbalance line in May 2023, so in terms of timing, we may have 6 months of correction still to go through.
If BTCUSD is not going to $0 and Institutional Money does buy around the $11500~$12000 levels, the next wave up is a larger wave 3, which for those of you still following, is a very large impulsive move higher. Michael Saylor will be proven to be right.
I am not buying anything until we close the imbalance below. Unless we start making a bullish move higher, which would reverse the break of structure that we saw at $28800.
Good luck if you HODL, I have definitely been in this position before, where my gut told me it would be okay, only to see a share go to $0. The upside potential is always worth it in my opinion. Only risk what you can afford to lose.
That said, I do believe that humans and computers have aligned and the BTCUSD is trading very textbook in terms of technicals.
Early adopters took BTCUSD from $0 to nearly $70,000 which in anyone's book is an impulsive move, and in other people's book a classic pump and dump.
When we're talking penny stocks this chart I believe would go to $0. But we're talking about an asset that has Institutional Money involved. Even the wealth of small countries.
I have used Elliot Wave to denote where I believe the BTCUSD has been and will go in the future.
Green waves 1-5, a classic impulsive move.
Red waves ABC, classic corrective 3 waves move lower.
The original range that I am working with starts with what I consider the first major pullback. Green 1 to 2.
Recently the BTCUSD had been consolidating at the top of that range around the $20k mark. Recent events in crypto land have flushed out more holders as FTX loses liquidity and Binance steps aside from doing anything to help.
Looking back to late 2020 price broke out of the range and left an area of imbalance. Institutional algos do not like being left on the sidelines. So they wait patiently with their orders and use their algo to push price lower (in this case). News and fundamental events accelerate prices to wherever the money wants the price to go. Adding some fear along the way is good business.
If we are in a corrective move, rather than a waterfall to $0, Wave A could = Wave B~C and that takes us to the Mid Range / Lower Imbalance line. Which would be a very neat trick.
I have also used an Andrews Pitchfork to indicate where the price could land. As the original range expanded by nearly 4x, I have used the 4th deviation on the Pitchfork too. This intersects the Mid Range / Lower Imbalance line in May 2023, so in terms of timing, we may have 6 months of correction still to go through.
If BTCUSD is not going to $0 and Institutional Money does buy around the $11500~$12000 levels, the next wave up is a larger wave 3, which for those of you still following, is a very large impulsive move higher. Michael Saylor will be proven to be right.
I am not buying anything until we close the imbalance below. Unless we start making a bullish move higher, which would reverse the break of structure that we saw at $28800.
Good luck if you HODL, I have definitely been in this position before, where my gut told me it would be okay, only to see a share go to $0. The upside potential is always worth it in my opinion. Only risk what you can afford to lose.
