As we approach lower levels, we are able to get a bit more clarity on potential paths for Bitcoin's correction. We should still consider a few options and be prepared for them.
What we don't necessarily have clarity on is what to call "wave 5". At this time, I lean toward calling the entire structure one impulse wave up with 5 subwaves. We can find 5 clear subwaves in wave "A" down and are currently in B. Wave C could find support at the prior trend line which falls in line with a .236 Fibonacci retracement of this entire structure. This would be rather shallow for wave 2, but that means we should prepare for a deeper wave 4 at a later date.
Are we bullish enough to hold this level and move into wave 3? Volume has been dwindling this week. We don't necessarily need high volume to move upward, but we will need volume to see a strong move up. We should look for a bounce at the support line with decent volume, and then watch for volume to increase as we sustain higher levels and traders feel more confident entering the market.
Ladder your buys, set your stop losses. The .618 of the entire structure seems very unlikely at this point. Potential ladder entries could be placed at the support line, the .5 fib, and in between the two near where the .386 fib retracement is.
All posts and charts are the opinion of the poster and are NOT financial advice.
What we don't necessarily have clarity on is what to call "wave 5". At this time, I lean toward calling the entire structure one impulse wave up with 5 subwaves. We can find 5 clear subwaves in wave "A" down and are currently in B. Wave C could find support at the prior trend line which falls in line with a .236 Fibonacci retracement of this entire structure. This would be rather shallow for wave 2, but that means we should prepare for a deeper wave 4 at a later date.
Are we bullish enough to hold this level and move into wave 3? Volume has been dwindling this week. We don't necessarily need high volume to move upward, but we will need volume to see a strong move up. We should look for a bounce at the support line with decent volume, and then watch for volume to increase as we sustain higher levels and traders feel more confident entering the market.
Ladder your buys, set your stop losses. The .618 of the entire structure seems very unlikely at this point. Potential ladder entries could be placed at the support line, the .5 fib, and in between the two near where the .386 fib retracement is.
All posts and charts are the opinion of the poster and are NOT financial advice.