But before we continue with announced topic, let us draw a temporary line for Bitcoin. As expected and predicted one week ago, it has risen and did it in a nice way. Is this rise over? The author doesn’t think so. The BTC should keep rising. Will we post updates here on this topic? Yes, we will. But not now.
Tha aim of this blog was and still is mainly the Ethreum. And started from today we will need to take care of “the DAO” too, as several exchanges opened the gates for trading DAO directly against tha BTC (poloniex) and also (in case of kraken) against the fiat money. The other exchanges will follow at some point of time too.
So the author thinks there will be a lot of action and, respectively, Elliott Waves.
It will take some time (at least a week) to gather the first market data for DAO. So, we will publish Elliott Waves for “the DAO” a bit later. But for now the author wants to share some general thoughts.
The only clear thing about the DAO at the moment is that it’s not clear at all what will it become in the future. It is no doubt the biggest experiment in the crypto world and it can become huge. On the other side, as with many experiments, it can easily fail. The author at least is ready to loose the invested money in it.
Because out of the failed “the DAO” the new ones will immidiately emerge.
Somehow it is like doing yoga. In a authentic yoga (not the modern stylish one) we do it all the time. Pushing ourselfs to the limit, filling in the body and the mind with huge amounts of energy, we bring up to the surface the hidden abilities and unpurities. It doesn’t feel all the time good but as long as the yogi takes care of the unpurities, he is more then fine. Why suddenly mention yoga here?
Well, as you know the author is doing yoga. He was lucky to meet authentic teachers, coming from old traditions. But the reason to mention yoga is mainly because what we have now with “the DAO” feels very similar. Its body (“the DAO”) is filled with a huge amount of energy (money) and it can bring unknown and extremely valuable projects but at the same time it will definately uncover the hidden problems. And it is good so. The community will take care about the problems. If we fail, we will need to dissolve this one DAO and start the new one(s) with the lessons learned. There is nothing what can stop the whole process now.
Ah, “and what’s about the charts” there seems to be the question rising slowly.
Yes, let us come back to Elliott Waves in ETH and our prefered count at the moment:
As expected, the ETHBTC declined (as a side note, the author didn’t expect it to decline so fast and so deep). Is it over and we are ready to rise strongly above ATH from the current levels in a straight line? Not likely at the moment. As you can see from the chart, on the way down the ETHBTC formed quite nice 5 waves. Waves 2 and 4 were different in time and depth. Waves 3 and 5 are extended, which happens very often in ETHBTC. All in one, it looks like a really nice 5 waves decline. The only one potential concern is that neither ETHUSD nor ETHEUR formed 5 waves on the way down. But we will tell more about these two pairs in the next report.
For the moment the most likely direction for ETHBTC is to recover up into the “retracement zone”, which is between 0.02580 and 0.02960.
Have a nice weekend and may be we will be able to virtually talk tomorrow.