I've been anticipating a price drop for the coming 2-3 days. Instead we've climbed up a little further in price, which I also flagged for in a previous post:
This has been my primary count for the past 2 weeks with a few modifications.
The 3rd wave should end soon as it's reached a 1.618 fib area which is very common in EW theory, (however, it's possible that we break through all resistance lines, but not very probable IMO)
Still targeting a 0.236 to 0.5 fib correction area meaning $7,300 to $6,800.
Subwaves:
This is a deconstruction of the 5th subwave.
Subwaves are harder to predict but if we make an assumption that the 1st wave is complete then we can see that a 3rd wave target at 1.68 fib level fits very well with the blue trendline that has been a strong resistance for the past months.
Don't try to trade these smaller subwaves!
Wait for confirmation that the 5th wave has ended and short Bitcoin.
Bearish Divergence:
Bearish divergence is a sign of a trend reversal coming
Price keep rising while RSI strength is going down.
Also volume is decreasing.
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Disclaimer:
I'm not a financial advisor and these are only my opinions. I don't take any responsibility for any investments that you make based on my analysis.
