SUMMARY
NOTE: Sorry about the Audio on the Video....my CAT chewed through the mouthpiece of the headset. Did not see it until after recording.
Bitcoin (BTC) today put in price bars that could form a Head & Shoulders pattern as shown below. The white line represents the Neck LIne across the bottoms of price bars. The LS is Left Shoulder, H is Head and RS is the Right Shoulder which is currently being formed. Volume also reflects and confirms the H&S. The minimum price move is measured by drawing a line from the Neck Line to the peak of the Head. This price distance is then measured down from the Neck LIne and that targets around $6,100. So, overnight, the Right Shoulder could complete.
The chart below would be executed once the Head & Shoulders complete. I've labeled the white waves towards red wave C. The wave iii of C is also subdivided by the circled blue waves 1,2,3,4,5. Once red Wave C completes, a trend reversal is expected towards $8k or higher.
The Alternate count is shown where if this is an expanded flat correction then the red C wave needs only below the low of red wave A. If so, the distance of red wave C could be shallower as shown in the below chart. It could be probable but given the H&S pattern potential, it is not yet.
The precision of EW is not what's important. The accuracy of EW counting is not what's important. Rather, the price direction, the overall trend is most important. This is when Elliott Waves and Chart Patterns can best identify the underline trend and make it your friend. Don't forget that Technical Analysis does nothing more than identify as many possibiliteis and narrow them down to a handful of probabilities from which a primary price pathway is selected. This means one can't forget that there are huge differences between a possibility and a probability.
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial
Laddering and Buy/Sell Setups.
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
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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.**