tells you what price area is going to hit next.
tells you far it will go.
The dark blue arrows represent the longer term impulse wave. Impulse 1 ended at the all-time high around 20,000. The first long-term corrective wave (where we are now) is on the down slanting blue arrow line. Remember, corrective waves move in 3 steps/waves. This corrective waves can be completed anywhere between now and 8000.
Ideally, we would get below the 10,000 level. We have conditions on a great many oscillators and trends to signal that this move is nearing completion. The greatest evidence we have of this is the massive influx of we have seen today. Today is the beginning of a (no moon in the sky). This represents very sentiment going forward if an instrument is at a swing high. How does this apply to an instrument at a swing low? Depends. The most common price action is a range trade for at least 1 week until we get closer to the next . However, in extreme conditions, we can get a full two-week cycle of buying during a that continues during the (which is on January 31st, remember this). That’s four weeks of continued momentum.
I also want you to notice that I have created day counts. Bitcoin likes to move in 30-day (give or take a few days) moves on the . This means that the current swing low is going to reverse anywhere between now and the next few days. I want to show you another view as well.
1. Same instrument, different chart setup. This highlighted area represents a powerful confluence zone. Let’s include the items from above.
- Indicative of the end of a corrective wave and beginning of a third impulse wave.
- Major returning.
- 10,000 is the heaviest on the entire chart.
- The angle that is crossing up is the most powerful support angle.
- The vertical line at 1 represents the end of a time cycle and the start of a new one. This is a strong area where prices often reverse the trend.
- The ending of a 30-day move.
- January 31st is right here and that is a phase, a . Which means that if an instrument is at or near a market bottom, there is a strong probability of a market going up.
- February 4th is a very important Date. Many important tops and bottoms are found around this date. High chance of reversals.
- How far will Bitcoin move on this reversal?
- I have a target of 38,332 on or around April 12th, 2018.