The current setup is forming a beautiful 5 impulse elliot wave structure, which is hitting extension points that align with key resistances. Allow me to break it down, as I see it.
Wave 1: already passed,
Wave 2: corrected very bullishly to the .382 level (fib lines for that not shown).
Wave 3 I am targeting the 1:1 extension at ~1100 price point (fib extension lines shown). This could potentially blow by this area and hit the overhead resistance before correcting!
Wave 4: I am predicting a 0.618 retracement (usually if wave 2 is small, wave 4 is long). That puts us around ~9100USD. I imagine we will see that within the next 24-36 hours. If wave 3 reached the overhead resistance and corrects, we may only hit ~9300-9400, so watching for confirmation of a correction, and laddering buys is important.
Wave 5: Back to the overhead resistance of ~1100-~1200 for a test of the upper edge of our huge bearish channel.
One important thing to note is this: we have seen this bullishness before (see failed fourth wave note). The 4th wave over corrected well into wave 1 territory, wave 5 limped (formed H&S), and we corrected strongly downwards soon after. Keep a close on wave 4 - if you see multiple 2-4hr candles in wave 1 territory - it may be smart to get out.
Wave 1: already passed,
Wave 2: corrected very bullishly to the .382 level (fib lines for that not shown).
Wave 3 I am targeting the 1:1 extension at ~1100 price point (fib extension lines shown). This could potentially blow by this area and hit the overhead resistance before correcting!
Wave 4: I am predicting a 0.618 retracement (usually if wave 2 is small, wave 4 is long). That puts us around ~9100USD. I imagine we will see that within the next 24-36 hours. If wave 3 reached the overhead resistance and corrects, we may only hit ~9300-9400, so watching for confirmation of a correction, and laddering buys is important.
Wave 5: Back to the overhead resistance of ~1100-~1200 for a test of the upper edge of our huge bearish channel.
One important thing to note is this: we have seen this bullishness before (see failed fourth wave note). The 4th wave over corrected well into wave 1 territory, wave 5 limped (formed H&S), and we corrected strongly downwards soon after. Keep a close on wave 4 - if you see multiple 2-4hr candles in wave 1 territory - it may be smart to get out.