We are checking back on the Bitcoin EW count with the PROFITUNITY approach. There was a complete 3rd wave move ending in mid April. We started down for the Wave 4 correction as expected- 5 magic bullets were present.
The chart is labeled with the A, B and 3 of C of 4. At that point we were not sure if this was the bottom or an outlier (we discussed the Telsa infusion). In this case the wave is following traditional EW patterns and has at least one more leg down. This correction is a bit difficult but still in line with the C Wave pattern as it has 5 waves and acts like an impulse wave.
We are expecting to see lows around the $25K area or lower to complete this corrective C Wave.
If we look at the larger time frame – weekly, we can see that since the inception on the exchanges (2018) Bitcoin has been moving up and we are marking the peak on the AO for now as Wave 3. It could turn into Wave 1 with current correction being a larger degree Wave 2. If predictions about Bitcoin are correct, we will see the last high of $65k just the start of the larger 5 Wave impulse wave up. Watch the AO peaks for the key to this, if the next wave has a higher AO peak and price, then it will confirm this long-term view.
On the Daily chart we put a Fibonacci retracement on the wave to see we are in the .618 area now. Usually, we don’t see them go too much lower unless it is a Wave 2. This has been a strong corrective Wave 4 down and looks like it will have another wave down to complete the pattern. We will watch for the 5 waves to complete.
Looking at the interior wave on the 240-minute chart shows the small corrections and points of each degree of the A, B and working in C now.
PROFITUNITY did have sell signals at the end of the trend that indicated this move was over. Our counting methods have been working for us our clients for years. If you would like more information, please contact our office.
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