One more bearish leg to 200 on Bitcoin Cash - Elliott wave analysis
|Hello traders!
Bitcoin Cash is looking bearish on the intra-day chart, where we see a completed Elliott wave leading diagonal in wave a, followed by a complex correction in b. We see a w-x-y move in b, with resistance at the 230/236 region, where Fib. ratio of 50.0 and 61.8 can react as reversal zones. A firm drop below the 220.1 level would suggest a wave c of a higher degree wave (v) to be underway. Sub-wave c of (v) can target area at 200.0.
Invalidation level is at 245.85.
BCH/USD, 1h
When diagonal triangles occur in the fifth or C wave position, they take the 3-3-3-3-3 shape that Elliott described. However, it has recently come to light that a variation on this pattern occasionally appears in the first wave position of impulses and in the A wave position of zigzags. The characteristic overlapping of waves one and four and the convergence of boundary lines into a wedge shape remain as in the ending diagonal triangle. However, the subdivisions are different, tracing out a 5-3-5-3-5 pattern.
-
structure is 5-3-5-3-5
-
a wedge shape within two converging lines
-
wave 4 must trade into a territory of a wave 1
-
appears in the wave one position in an impulse, in the A wave position of A-B-C
Elliott wave leading diagonal:
Interested in our services? Visit us at www.ew-forecast.comand try our 7-day Trial service, and get actionable Elliott Wave charts today.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.