Fibonacci Everywhere: $5k -> $8k -> $13k? (Correction First)
It appears we have finished the fifth Elliot Wave of a larger degree first wave (the genesis wave). But we encounter a small problem attempting to extrapolate the Elliot ABC correction wave for this larger wave (I). Elliot Wave Theory suggests ABC corrections should be near the end of their 4th wave. But the wave (IV) price is $1835! It’s too unbelievable that Bitcoin would correct so severely, representing a 63% correction off all-time highs.
So we’ve chosen not to use wave IV as the target for the ABC correction. Instead we use the smallest guideline value of 0.5 x wave (I) for the wave (II) target which also gives the full ABC correction wave ($2475). Though this still represents a fairly severe 50% correction off all-time highs.
For the first leg A we use the end of the smaller degree wave 4 as the target ($3600), then 0.5 x leg A for leg B target ($4275), all according to Elliot Wave guidelines.
As a side note, something very interesting about these prices is that they appear to be following the Fibonacci sequence: 0 1 1 2 3 5 8 13 21 etc. For example, end of wave (I) gives a price close to $5k, which is confirmed. End of wave (III) is projected to give a price close to $8k using Elliot Wave Theory. And perhaps end of wave (V) could give prices close to $13k, sometime in 2019. It will be very interesting to see if this pattern materializes.
So we’ve chosen not to use wave IV as the target for the ABC correction. Instead we use the smallest guideline value of 0.5 x wave (I) for the wave (II) target which also gives the full ABC correction wave ($2475). Though this still represents a fairly severe 50% correction off all-time highs.
For the first leg A we use the end of the smaller degree wave 4 as the target ($3600), then 0.5 x leg A for leg B target ($4275), all according to Elliot Wave guidelines.
As a side note, something very interesting about these prices is that they appear to be following the Fibonacci sequence: 0 1 1 2 3 5 8 13 21 etc. For example, end of wave (I) gives a price close to $5k, which is confirmed. End of wave (III) is projected to give a price close to $8k using Elliot Wave Theory. And perhaps end of wave (V) could give prices close to $13k, sometime in 2019. It will be very interesting to see if this pattern materializes.