Elliot wave Pt. 2
Updated
Updating on my first idea published inspired by Alessio Rastani, If this Elliot wave count is correct, there is still potential for a massive correction. If you look at the weekly stochastic RSI we have a lot of downside potential. First target of the correction would be the 20 MA (weekly Bollinger Band MA) the next target if that breaks would be 2800, because if a weekly closes below that moving average we are not in a bull market and we haven’t seen the bottom yet and the next major support level would be 2800.
We are right at the last high on the bear market before the "capitulation dump from 6k. Also note there is a possible 2011 trend line drawing that could be acting as resistance right at this point. Combine that with the 78.6% retracement from the recent 8k top and the 20k 23.6 % retracement, we have a few coinciding indicators of a possible reversal. Also the MFI, RSI as well as the stochastic RSI on the daily is overbought and has a cross, not to mention bearish divergence on all three indicators as well.
Finally we haven't seen any recovery of volume since the last capitulation candle to the downside.
Sure we could continue this parabolic rally, but at some point all the fiat will be depleted and only way into the future is down.
We are right at the last high on the bear market before the "capitulation dump from 6k. Also note there is a possible 2011 trend line drawing that could be acting as resistance right at this point. Combine that with the 78.6% retracement from the recent 8k top and the 20k 23.6 % retracement, we have a few coinciding indicators of a possible reversal. Also the MFI, RSI as well as the stochastic RSI on the daily is overbought and has a cross, not to mention bearish divergence on all three indicators as well.
Finally we haven't seen any recovery of volume since the last capitulation candle to the downside.
Sure we could continue this parabolic rally, but at some point all the fiat will be depleted and only way into the future is down.
Comment
OK actually this count is wrong. Because we broke the bottom of wave 1. My mistake.
Comment
BUT it could be right perhaps if you disregard the weekly wicks and only regard the candle close. Sorry can't delete now.Disclaimer
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