The predicted move down has taken place. The 1 mln. $ question (or should it be 100.000 ETH?) is how deep will it take ETHBTC now?
As promised, today we will take clsoer look at the bullish potentials.
First, the possibility with almost immediate bullish turn:
Here, after completing the leading diagonal “1” we had an “a – triangle b – c” correction. At the moment the wave “c” is very close to the 100 % extension of the wave “a”, which is the most often relationship. The volume increased during the fall down, which is also absolutely normal. And the sentiment is quite ripe for a turn. As we can see from chats, dedicated to cryptotrading, there are way more bears now then the bulls.
But. There is one “but”. Somehow this leading diagonal “1” doesn’t feel really good. First, as we said before, we have never seen it before, to have two leading diagonals one after another. Surely it’s possible, but how probable is it?
Anyway, for this case to be true, the level -> 0.02350, it can’t be broken. This is the SL for those who want to take long position right now.
Let us then take a look at the second bullish potential. in case 0.02350 will get broken and this leading diagonal “1” will be invalidated:
One picture is better then 100 words, yet some words are required too. We already took a look at this possible structure in our last post. Here we strongly believe, that we had a leading diagonal (marked “I” in the top left corner). Where does this strong believe comes from? It looks good, had clear 5 overlapping waves and the clear “w-x-y” (alltogether marked as “blue w”) correction thereafter. In case the rise from that “blue w” was just another corrective wave up, we could get the shown here Elliott Waves structures, called “Flat”. Normally it would end slightly below “blue w” (0.02350), but there is also variation, called “irregular Flat”. In this case it will stop above this level.
All in one, as more traders truning bearish on ETHBTC, we are turning bullish.
The next planned update is tomorrow, Wednesday (european evening time). In case one of the discussed today structure will be finished earlier, we might publish short update today in the night.
Take care and, as always, plan your trade and trade your plan. Use any analytic as a plan tool only. Use your discipline to trade.