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:

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