Here I present an Elliot Wave study of what should be the final leg down in this very painful BTC correction.
Starting at the $30k low, we see a 3-wace corrective movement up to a height of $42,990, where I have marked a purple 4. This then commenced the final wave 5 leg down that I have attempted to mark out in red.
It starts with a sharp move down to 1, with a rapid correction back up to 2, for a lower-high. The next leg down is a 5-wave movement down to 3, at the improbable price point of $31,111. A 3-wave corrective rally ensued next, up to 4, from which commenced the current, and final wave 5 impulse down.
This final leg down is playing out as a 5-wave impulse movement, of which I have so far counted waves 1, 2, 3 and 4. Remaining is the last wave of this movement, which I believe has just commenced, with price being rejected at the 4H 50MA line on the last two bars.
In terms of targets for the low, I have previously projected the bottom of this movement as a Fibonacci projection of the larger Correction and these are represented by the three golden dotted lines passing through the green box.
Observable within the last period of consolidation is a Head & Shoulders pattern, whose neckline will be crossed shortly. However, I point it out as it is also projecting a minimum drop to $28,400, which would make the $27,704 target almost a certainty, while bringing into focus $26k. I feel the lower Fibonacci level of $23,357 is out of reach of the bears, but it is a possibility.
What do you think? Has the corrective trend somehow reversed, or are we going to break through the $30k psychological barrier?
Starting at the $30k low, we see a 3-wace corrective movement up to a height of $42,990, where I have marked a purple 4. This then commenced the final wave 5 leg down that I have attempted to mark out in red.
It starts with a sharp move down to 1, with a rapid correction back up to 2, for a lower-high. The next leg down is a 5-wave movement down to 3, at the improbable price point of $31,111. A 3-wave corrective rally ensued next, up to 4, from which commenced the current, and final wave 5 impulse down.
This final leg down is playing out as a 5-wave impulse movement, of which I have so far counted waves 1, 2, 3 and 4. Remaining is the last wave of this movement, which I believe has just commenced, with price being rejected at the 4H 50MA line on the last two bars.
In terms of targets for the low, I have previously projected the bottom of this movement as a Fibonacci projection of the larger Correction and these are represented by the three golden dotted lines passing through the green box.
Observable within the last period of consolidation is a Head & Shoulders pattern, whose neckline will be crossed shortly. However, I point it out as it is also projecting a minimum drop to $28,400, which would make the $27,704 target almost a certainty, while bringing into focus $26k. I feel the lower Fibonacci level of $23,357 is out of reach of the bears, but it is a possibility.
What do you think? Has the corrective trend somehow reversed, or are we going to break through the $30k psychological barrier?
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