Bitcoin
Panjang

BTCUSD Wave 3 Formation Potential

164
Recently we have seen BTCUSD bounce around from a previous resistance zone down to its relative support zone. Both connections had some nice wicks that allowed for some great scattered entry points. These bounces have begun to setup a new directional shift if we look at the first resistance zone as completing wave 1 and the touch back to support (.618) as completing wave 2.

If we look at the idea posted, we can see a wave 3 (1.618 * wave 1) impulse would put us at around 19,400 which also happens to be a previous disregarded divergence candle (something I put significant weight in).

The retrace brings us back down to 18,175 for wave 4 (.382) which again brings us back to a disregarded divergence candle as well as a confirmed TL (in essence... lots of confluence at this level).

To complete the series, wave 5 can bring us up to 20,913 (1.0 * wave 1).

This idea is in its infancy but as always its invalidity can be easily determined and I will trade it until it fails.

Penafian

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