BTCUSD - Elliot Channel for Top of Sub Wave 5
We can now apply the Channel Technique to target our next peak. This is a channel that is drawn from the bottom of Wave 2 and Wave 4, and in this case parallel with the top of Wave 1 due to Wave 3 being extended.
The thick yellow line @ $6920 is our 2.618 fib from our larger impulse wave, this is where I suspect the top will be for two reasons.
1) It's our 2.618 fib from our larger wave and is a natural target.
2) There is a guideline that states sub wave 5 can equal sub wave 1. If we speculate at this time following that guideline, sub wave 5 will also end at around $6920. This also fits well due to Sub Wave 3 being extended.
The guidelines state that Wave 5 can extend further but I will not use these here as I don't feel they fit. Just keep in mind if we breach the top of this channel it will have to be by a large amount for another target to be hit. I may not be able to re-calculate this in time if it happens.
The sell pressure at the top should be immense. Once we hit the top of the channel and begin our descent, we may be in a large A-B-C correction. Further analysis to come at that time. Just know that once we complete that correction, we may have completed Wave 1 and Wave 2 of an even larger set of Waves. Again, further analysis to come there. I'm merely speculating at this point.
Since I feel confident in the target, I can give a timeline. We can expect to hit our peak in 5 days or less.
If you're planning to sell the top, I would subtract at least $150 or more from the target to be sure it hits.
If we break the bottom of the channel before touching the top the channel will have to be moved to that new low.
Can anyone else spot the Inverse Head and Shoulders? Set some buys at the bottom of the right shoulder, but expect immense buying pressure here so don't be too greedy.
That's all for now. Realize I'm only projecting from the current Sub Waves we are in right now. In the coming days I will dive deeper into the larger wave we've been in for a while and project from there as well. I'm not sure what I will find yet.