SUMMARY
1st Blood is putting in the handle formation of the Cup & Handle pattern. It isn't going away. A correction often can feel like the whole ceiling is falling on you. For many who have never experienced a correction, the psychological pull to exit and throw in the towel can be strong. Such actions are often what causes the "Capitulation" stage of a correction. This is when there is a sudden surge of sell orders because many are selling out of fear and disgust. These poor souls don't understand what the Oracle of Omaha's famous quote means: "You want to be greedy when others are fearful. You want to be fearful when others are greedy." Easier said than done, for sure!
The chart below show the $10.05 target as remaining solid. The handle coincides with a wave 2 and that means a probable 50% retrace of wave 1. That handle formation would establish the base for the next run up. Bear in mind that the handle pattern to morph into any other pattern or Elliott Wave type of corrective count. However, it would likely mean a different pathway, but same destination.
The close up of the handle pattern can be counted as an a,b,c set of corrective waves. The red c wave can also be further subdivided into five waves (white 1,2,3,4,5).
The BTC pair is still in the basing stage and could start climbing and build the right side of the forecasted Cup pattern. However, as it lags the /USD pair, it will still likely follow the pattern pathway.
Legal Disclaimer: 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.
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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