Just few days.. But how the sentiment has changed! As we started to write about the possible turn up, I believe we were almost the only ones who did it. Now the crowd is ethusiastically “in” so that we need to consider where should we look for the top.
For the moment it seems like the most interesting and exciting advance is over. We have plenty of evidence in the sentiment area. Many bull traders who were silent at the bottom and at the beginning of the turn up, now became again loud and relaxed.
However, as we said in the title, the 3-d wave is likely over:
Let us see this wave in details:Our expectations are that we should first correct down to the area between 0.019-0.02050 and then make a final rise in the wave 5.
After that much bigger correction is expected.
By the end of this bigger correction we should be around the middle of “the DAO” creation phase. We can only guess what kind of negative news will hit the wire at this time, as it is typical for the wave 2 correction be accompanied with some bad news for underlying asset. Time will tell.
For now we keep our count (which our readers can follow since the beginning of the turn from the low at 0.015). We want to see the following to keep it our main count:
- correction to somewhere around 0.019-0.02050
- rise to the area slightly above 0.024
- the RSI divergence at the end of this rise.
Take care and enjoy the weather. Here in Europ it’s finally sunny and warm. After the yoga session the writer of this blog is going to take a walk. Wish you to have a nice time too.
The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
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