Last several times I told you about target at $28-29k using the Elliott waves enhanced with the trading chaos approach. But as you know I am not the master in this approach, that’s why I usually use it in conjunction with other TA methods. I found the rule in the Bill Williams book that the 5-waves cycle should lasts approximately 140 bars. Using this tip I received the dangerous sign for the Bitcoin.
Another approach to wave’s counting
Let’s take a look at the 4h timeframe of the BTCUSDT chart of the KuCoin exchange. You can remember from one of my previous analysis that BTC now is in wave 5 of the higher order. Earlier I supposed that the subwave 5 in this wave 5 was finished, but the wave 4 have to associate with the AO zero line crossover, and we saw it only now. Thus the current price structure could be the wave 4 represented as the ABC correction and we will see another one leg down as the wave 5.
What with the classical approach?
On the chart below you can see that the inverse head & shoulders pattern transformed to the ascending triangle, which was not broken to the upside, moreover, even resistance 1 is not broken too. The bad signal is the confirmed bearish divergence with the MACD histogram, but it’s weak and non-confirmed with the MACD line. Weak argument for the bearish scenario. To be honest I still believe, that Bitcoin will reach the supply zone to collect liquidity, but keep your eyes on the resistance 1 and this triangle, it’s so important now.