As shown in the chart above, we bottomed out around the beginning of wave 4 of wave III which is typical according to EW theory. We also bounced back off the highest that we've seen since the end of 2015. So the bulls have come back with some pressure to keep the crypto boat afloat however we are not in the clear yet.
According to my count, we have completed wave Y of the corrective wave IV. Now, this could be the end of the corrective phase if we can continue to push through the resistance lines and our ATH . Unless we hear a string of really positive news, I don't think we can push through the ATH without correcting for a little while longer. I have drawn out a possible triple combination corrective wave which ends back around $5500 which I think is most likely.
I am so cautious when getting back into the market as corrections are the hardest patterns to predict. I only have my core portfolio of coins and I'm also making quick small trades where I see opportunity. When we have clear signs of a major bull run then I am willing to risk more.
Thanks for reading everyone! please leave a comment/feedback below. Would love to know what you guys think about my wave count!
Considering this, I think we have two most likely paths. Whatever happens I think we need to complete a wave 5 according to my count. We could then extend the bull run further into a double Zig-Zag correction (drawn out in yellow) or we could be nearing the end of the run now (drawn out in green).
If we do follow the yellow line then watch for the bull trap!!!
We ended up forming a double top. I would be firstly looking at a bounce off the blue retracement levels for possible small entry with a tight stop loss. Failing that, I would look to the green retracement lines for a bigger entry as risk decreases and still use a tight stop loss as we could go back down to $6k from here. You just never know!