Bitcoin – Elliott wave analysis confirms dump!
Hi all!
Bitcoin didn’t hit our target with the crazy short setup, but I closed out all speculative longs today. They have only the tradeinvesting part of the deposit. I remembered Elliott wave analysis and decided to brush it up today.
On the 1D timeframe of the WhiteBit exchange BTCUSDT chart we see the expected formation of Elliott wave 12345. We have short waves 1 and 2, super-impulsive wave 3. I can understand this due to the minimum values of AO and Acceleration. The current uptrend channel is very boring – it is a typical wave 4. We see that Bitcoin was 3 times the 0.23 Fibonacci level, but was unable to break through it. The minimum correction target has been achieved.
Moreover, if we look at the Williams alligator on the 1W timeframe. The price, adjusted exactly to the green line, received a rebound. Its maximum target is the red line, but I don’t think price has the strength to do that. I also want to draw your attention to the key fractal level. Bitcoin also failed to close above it – extreme weakness. Thus, according to the chaos trading method, there is no reason for a rise above the current price, and wave 5 can begin right now. If you have read my articles, you already knew that divergence with AO and Acceleration is the top 1 signal that the trend is over. I try to be patient and follow my basic analysis, but to be honest, sometimes it is very difficult due to emotions.
Good luck!