BITCOIN CORRECTION BEFORE NEXT LEG UP - ABC WAVE FORMATION

We successfully completed the 1-2-3-4-5 Impulse Elliott Wave meaning that next is the A-B-C Correction Wave.

• The A wave will be a retracement to the nearest support, being the previous consolidation region, as well as the 0.382 fibonacci retracement.
  
  
• The B wave will be a small bounce off this 0.382 retracement, or maybe sideways/ranging slow consolidation.
  
  
• The final C waves will be sharper and take us down to the 0.618 retracement and also where the (down)trend line was broken (see attached chart below). I expect a bounce off the trend line at the 3600 region as it will act as support turned resistance. The fibonacci level here is also a confirmation of this level being rejected.
  

I am therefore short-term bearish and believe we shall proceed upwards to $4400 after completion.


With regards to the mid-term, I am overall bullish and believe we can move back up higher to $4400+. Reasons why are explained in my previous post.

Happy Holidays! All the best for 2019!

Commento:

Wave A has completed and consolidation is occurring before the final C wave. I will Begin placing orders at $3650, $3600 and $3550, averaging a position at $3600.

Commento:

Unfortunately, as strong as the indications of an Elliott Wave correction were, it failed to complete and as a result this technical analysis is invalidated. My next signs to look for is the formation of a double top at this 4200 level. If we fail to form this, and we head further up, I highly believe that we will have a strong correction and retracement from the 4400 level. This level is very strong and will not be broken in the first attempt, also given how extended the market is at the moment.

In summary, the Elliott wave formation has been invalidated and the next observations to be made are a double top at approx. $4200, or a harsh rejection from the 4400 level.

This idea will no longer be updated.