There are 4 resistances/support levels matching the line:
- $11600 (0,236)
- $13000 (0,382)
- $14000 (0,500)
- $15640 (0,618)
Now we are on the 0,236 level.
I see two scenarios for the development:
1. The red one: retracement is not finished yet and the price will break down once more. A double pattern is expected. The 1st is already drawn and he 2nd one starts with the (X). The Red scenario will find the first proof if the (W)-(X) wave will behave as an A-B-C.
2. The blue one: retracement is finished. Impulse is expected. That scenario will find support if the movement to the next will look like an impulse (Wave 1).
The fall is retraced to the 0,236 level. The next target is $13000. Once the price reaches the 0,382 level I expect small bounce with a further break of that level (no matter if we follow the 1st or the 2nd scenario). The closer we get to 0,618 level - the higher chance for prices to make a turn. So let's keep an eye on the development of the 1-st or (W)-(X) wave.
Both double and the impulse push us to the 0,382 or even higher levels.
The idea is aimed to show you, that even if we reach the 15640 level, we still cannot be sure, that correction is done, but the hint is hidden behind the structure of that (1-st wave or W-X) movement.
More description of the idea can be found on steemit:
See more on steemit: https://steemit.com/trading/@dkn/bitcoin-trading-ideas-15-30-jan-retrospective-analysis-and-forecast-using-elliott-waves