sngyuchao

Bitcoin short: Breakdown below $25000 Bitcoin breaking down below $25,000 is a significant development to an Elliott Wave analyst. It means that we have confirmed the previous up move as a correction and not a new bullish cycle. Thus trades should be bias to the short side.

I am not sure what is holding up bitcoin except that the longer it held at this support, the worst it is going to fall. As can be seen from my chart, 2 waves down has already completed. What is not so obvious is that the first wave is actually wave 1 of a higher degree. The 2nd completed 5-wave is actually a sub-wave of a lower degree. That means, I expect bitcoin to really crash with a wave 3 of a wave 3. The build up around this price for so long is a cause for concern because the longer it held, the more “fuel” is accumulating for the crash.

As can see from my drawing, I believe that Bitcoin move up is a corrective way. The C wave is also potentially an ending diagonal.

In my last post on bitcoin, I called for a neutral standing and advised to wait before action. Over the weekends, when Bitcoin fell below 20k, hit a Fibonacci level, and then rebound, it was actually a buying opportunity (I was too tired to post anything). But now is still a good opportunity to buy because we have additional confidence that the price will hold and that after 1 day, we actually have a green body candle. Long and place your stop below the recent low.

Since my last posting where I mentioned that btc is going to crash, it had fallen by more than 10k. Now that btc is at a very strong support , there is actually a chance that it will rebound. However, if my Elliott waves counts are correct, that will not be the case. What this means is that I think it will crash even more. What I will want to see for this to happen is that at this critical support, price range is small and spends quite a while here. Period wise, 2-4 days will be sufficient. The reason for this is kinda like a trap to lure buyers in such that the eventual crash will have more power.

Be ready for a crash in bitcoin. We have seen the completion of a correction after the first 5 waves. Now we are on the 3rd wave which is gonna be a huge crash.

M analysis is simple, I think there will be another down leg for Bitcoin. The price is also at a strong support.