SUMMARY
Bitcoin (BTC) overnight price action could have completed five waves (blue) and I've labeled the subwaves of the blue wave 5. So, if this is correct, a minor correction could be on next.
If so, perhaps a small expanded flat could look like below. This chart shows waves a and b as being complete and c has started. The completion of wave c is expected to trace out five waves down (red subwaves of c). Equipped with this awareness, would one panic sell should this occur? Not as likely as one who is uninformed, unaware or purely trading with instincts.
The below chart shows an alternate where wave 5 is not yet complete and so a bit more higher to go before the minor correction. It matters not which way, as the destination is the same.
Here is the BitFinex price feed chart. It had always bothered me a bit on how quick the correction was. The below outlines that perhaps the correction is not complete. We will know if this is the preferred direction if price gets repelled hard by the upper white line of the channel. Would I panic sell on this scenario? NO! Being aware that this is a c wave of an abc means I'd be thinking more about how to ladder a bit more in at the terminal end of the c wave. This thinking is very different from a panic...it is more confident, calm, disciplined and aware.
Check out the video. It contains a couple take home lessons you might find valuable!
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?
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Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**