Emotions are interesting part of our life. Just few days ago it was so difficult to write the text like “Bottom line. The rise is expected…”. Everyone and their mother was bearish. There were plenty of concerns and reasons for further decline. And to be honest they are real (concerns and reasons for low ETH price), no doubts about it. However, the markets are working not in a straight logical way. Quite opposite. The main purpose of market is to fool the majority of its participants. Ok, joking. At least partially.
The emotions for trader/investor (as in the real life) can be friend or can be enemy. It’s not the emotions itself, which becomes your friend of enemy. It’s our skillful attitude to every particular emotion. If this attitude is trained over and over again, we gain the ability to use the underlying power of every single emotion. This power can, in case of investment, manifests itself in making the right investment decisions.
Now, to work with the emotions and its “hidden” power in a direct way is a very high level mastery, which can never be learnt online or through the reading.
Luckily for us, Elliott Waves give us tremendous tool to predict and point out exactly those emotional turn points. Besides, you have the author on your side. He can gather the needed sentiment information for you.
Ok, we were able to pinpoint pretty exactly the last bottom.
The mentioned in the last post bearish trend-lines are broken for all ETH pairs (ETHBTC, ETHUSD and ETHEUR).
So, sky is the limit now? One million question.. Let us try to find an answer with the help of Elliott Waves:First, look at how perfectly the mentioned trend-line was broken. The price goes pierces it the first time, retraces back to “kiss it again” and then rise more, and more, and more..
Today the author will open another his secret.
We have now the first finished 5 waves (yellow arrow with the text on top), then the retracement and the new rise is in the process right now. What we can do is to use “Fibonacci extension” (see the dotted lines). We want to check the following: is there any relation between the first 5 waves and the next ones? For instance, if it will be 1:1 (you see red 1 with the price in the brackets afterwards) the chances are it’s just a correction. To make a more clear call, the author would normally have to check some secondary aspects. This is just one example as there are many other possible scenarios. For those who are seriously looking for learning and applying the Elliott Waves principles, the author would advise including this technic into regular analysis.
Bottom line for today. The rise should continue.
Tomorrow will be most probably very interesting day with Bitcoin halvening on the agenda. So it will give us more price action and patterns.
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