The way I see it, the spike from the 0.618 fib level was simply the 3rd going into the 4th corrective wave. This is not necessarily a bad thing, I just don't want people to mistake this for the first impulsive move up!
So we have two targets. We can assume a first target where we will have a truncated 5th wave. This is just fancy talk for saying that wave 5 will not retrace past wave 3, meaning we have already hit the bottom. This target is a 100% extension from the 1st to the 4th wave. There is not a guarantee that this will end the correction, but it will certainly be a strong area to begin accumulating for the next move up.
The second target is where we retrace to the 0.786 level. These are actually fairly common for wave 2 retracements. Since wave 3 is often the longest wave, it makes sense that wave 2 would offer a deep retracement. This just means the upside will be better and better! There is a great confluence zone of a that lines up nearly perfectly with the .
The only bad thing about NANO right now is that if we were to enter a trade, we would not be entirely sure where to set a stop-loss at. Unless you were to set a stop-loss below the 0.786 level, but that would be a 21% loss if there was a complete wave failure (assuming you were aiming for a truncated 5th wave). Because of this, I will most likely set a smaller buy at the 100% retracement, and wait to see what the reaction is. If we begin moving impulsively, beautiful! If not, I will make sure to be ready for the next retracement.
*** PS *** Remember that Bitcoin rules the market. Things are looking a little shaky right now for BTC . We should not be in panic mode just yet, but there have been some brutal selloffs here recently. If Bitcoin pushes to new lows, all bets are off for the alt market! It's pretty hard to make money in a bear market if you are unable to short, but it's certainly not impossible - happy trading!