Bitcoin loves its ending diagonals! Will this pullback end soon?

The bull market run to 64k ended with a text book ending diagonal. In Elliott Wave terms. That ending diagonal traced out minor wave 5,the final wave, of intermediate wave (3) or primary wave [3] per my wave count. What I was looking for next was what is very common in Elliott Wave analysis, a fourth wave that retraces to the low of the fourth wave of lesser degree. In other words, intermediate wave (4) should retrace to the minor wave 4 of intermediate wave (3) low. This low is shown on the chart below by the horizontal yellow line. Since the completion of the ending diagonal that completed intermediate wave (3), BTC has traced out a 3,3,5 flat for intermediate wave (4). Wave c of (4), like minor wave 5 of (3) appears to be completing via an ending diagonal precisely at the target of the minor wave 4 low. If my count is correct, then we should see BTC put in a new low overnight. But, beginning as early as tomorrow the next leg up for BTC to new highs could be underway. A slight new low could be the ultimate bear trap. But for this to be correct, then we would need to see a rapid snap back for BTC creating a very bullish reversal daily candle.

About alphahorn

I received an MBA from Columbia University’s Graduate School of Business in New York and am a Wall Street veteran. I’ve worked for a number of investment banks including Smith Barney and First Boston/C S First Boston in New York. Over the years, I have developed my own Proprietary Swing System and I combine that System with my own Elliott Wave Analysis to trade.
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