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.
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structure is 5-3-5-3-5
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a wedge shape within two converging lines
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wave 4 must trade into a territory of a wave 1
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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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Author

Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.






