Bitcoin ABC Correction? Some Predictions.
AKA this could backfire spectacularly!
This post is purely speculative and is based on my current knowledge of Elliott Wave theory. It could be entirely wrong, but I'm putting it out there to see how it plays out.
If it goes well? Great! I might actually be doing something right.
If it goes wrong? Hey ho! More work to be done.
Elliott Waves
I've been reading a few books on EW theory (reviews to come) and also watch videos by 
The most common pattern is a set of 5 waves - called impulse waves - followed by an A-B-C correction.
On my chart, the 1,2,3,4, and 5 of the impulse set have been completed. And we should now be in an A-B-C correction pattern.
Here is my guess of where that ABC correction will leave us:
Around $11,000 could be where this Elliott Wave cycle leaves us, and a new upward pattern could come into play.
Why?
Trend line Broken
When a trend-line is broken, it often becomes resistance. The previous short term trend line, which gave us the most recent rally, has been broken and will likely now act as a resistance point.
It also happens to intersect right around a key Fibonacci level.
The reverse is also true for the line marked "Major Support", this line was acting as long term resistance until recently. Now it has been broken, it should provide us with a key support level.
Bullish MACD
The MACD is currently bullish, meaning further upside is to be expected, but I don't believe there will be enough bullish sentiment to push us back through the resistance line.
But! The daily MACD is still showing as bearish:
And lastly; The RSI on the weekly chart still shows signs of being overbought:
Ignore the "oversold bounce" I forgot to delete it when switching time frames.
Always Remember
This is just a prediction by someone learning technical analysis.
We could just as easily see China do a full 180 and see prices surge to $20,000+ as we are likely to see a return to $11,000 or even $10,000 again. But we shall see!
Also remember:
- This is not financial or investment advice.
- Never invest more than you would spend on shoes, and lastly:
- Remember to take profits!