Chart above us is what we call a Fifth Wave Extension Impulsive move.
Basically a fifth wave extension impulse move has the fifth wave to be the longest of the 3 impulsive moves to the upside and wave 3 to not be the shortest, which leaves us with wave 1 being the shortes of the three
At the End of a Fith wave extension move, Price usually retraces the entire move, i.e from the start of the fifth wave to the end of it, which means we can expect a 100% retracement.
However, it also says that Wave 5 always retraces 61.8% which RUNE hasnt done so far and would have us our first buy orders at the 61.8 region before even dreaming of a bottom (tho i bought some at support on the dip)
We can place orders at the 0.764 fib support region as there was a lot of volume traded there, and should hold as support and as a worst case scenario as seen below
Note that in a fifth wave extension, it is very important that there is no overlapping.
Should note also charts like this are a reason I'm still bearish on Bitcoin.
check out the Bitcoin analysis below.
If you agree, pls leave a like and share your thoughts in the comments.
Feedback is always appreciated.
Basically a fifth wave extension impulse move has the fifth wave to be the longest of the 3 impulsive moves to the upside and wave 3 to not be the shortest, which leaves us with wave 1 being the shortes of the three
At the End of a Fith wave extension move, Price usually retraces the entire move, i.e from the start of the fifth wave to the end of it, which means we can expect a 100% retracement.
However, it also says that Wave 5 always retraces 61.8% which RUNE hasnt done so far and would have us our first buy orders at the 61.8 region before even dreaming of a bottom (tho i bought some at support on the dip)
We can place orders at the 0.764 fib support region as there was a lot of volume traded there, and should hold as support and as a worst case scenario as seen below
Note that in a fifth wave extension, it is very important that there is no overlapping.
Should note also charts like this are a reason I'm still bearish on Bitcoin.
check out the Bitcoin analysis below.
If you agree, pls leave a like and share your thoughts in the comments.
Feedback is always appreciated.
