None of the levels, mentioned at the end of the last post, has been reached. It means we don’t have to add anything totally new to the ETHBTC price description. Patience is the key at the moment.
To show some possible outcomes of the current price action we draw several equally possible potential patterns.
If that is what market has prepared for us, then we should see pretty swift decline down to around 0.025 with the almost immediate rise back up to 0.02750. This is the way how the thrust from the triangle develops. First, fast move in the direction of the previous bigger trend (that was the 5 wave decline, marked here as “a”) and then move back to the origin of the thrust (marked here as the wave “b”)
It is possible, however, to see the current picture in the following light:
Here we will see several impulsive movements down (at least two more, waves 3 and 5) to finish the correction of the previous leading diagonal from 0.02350 to 0.02940
And here yet another picture to explain more in details about the “alternate count”:
This pattern represents a variation of the Flat. It consists of 3 waves down (blue “W”), then 3 up (blue “X”) and at the end 5 down (blue “Y”). All together it would build then the complete correction for the diagonal wave “I”, giving enough room and sentiment for a substantial rise in the wave “III”.
As we see now, there are at the moment too many different open options. This is due to the fact that there are generally many types of corrective waves. Besides, some of them have also quite some number of variations. So for Elliott Waves analyst it’s always not boring but rather time consuming, trying to figure out which exactly corrective pattern is taking place now.
Bottom line: we still keep watching some important levels and the structure which will develop by the moment price will reach these levels. These are:
- 0.02350 on the way down
- 0.02940 on the way up
I’m not sure yet if we will be able to post update tomorrow or only the day after tomorrow. When we do it, however, we will spend more time on the potential bullish structures. Though not discussed today, we have quite some even in the current market position.
The most important thing for the moment is that the leading diagonal from 0.02050 to 0.03 means the bigger trend is up. And we keep our midterm bullish call as long as this level (0.02050) isn’t broken.
Take care and don’t forget, any analytic has only one goal – define your entry, SL and TP levels in a way that Risk/Reward defines your long term success.