Great, we seem to have completed a double combo (WXY), and the wave is now retracing. I entered a long position at €643 and am expecting a respectable retracement to at least .5 fib levels. I'm laddering sells at various price points at the .5 and .618 ranges.
Now, the tell tale sign for whether we are continuing in a bearish trend or back into a bullish trend will be whether or not a wave failure occurs after the five impulse waves up. If we see a wave 3 forming, then we can start re-positioning for an uptrend. if not, then expect to see a further Z wave down (marked as dotted lines; bottom is just a possibility; note that it does not have to be a zigzag and can instead be a flat or a truncated wave)
Now, the tell tale sign for whether we are continuing in a bearish trend or back into a bullish trend will be whether or not a wave failure occurs after the five impulse waves up. If we see a wave 3 forming, then we can start re-positioning for an uptrend. if not, then expect to see a further Z wave down (marked as dotted lines; bottom is just a possibility; note that it does not have to be a zigzag and can instead be a flat or a truncated wave)
Looking at the current chart at 12:41am GMT on 24 Feb, I'm sensing that the bulls are getting a grip on the market to punch up. So I'm updating my hypothesis that the upward trend we saw last night was NOT a wave X, but a wave 1 instead.
Provided that we have enough volume pouring through, and that Bitcoin doesn't panic and freak out with a crash, we should be heading for another nice ride up to €750.
Watch out for resistance in the region of €720 - €730. Stay cautious, stay profitable!