BTC - current market phase
What we are currently observing on the Bitcoin chart is a short-term correction phase within a larger cyclic impulse movement. It appears that wave 2 < wave 1 < wave 5 is forming. Specifically, wave 2 has seen the completion of wave A and potentially wave B of its corrective movement. Therefore, we are waiting to see how the formation of wave C unfolds. This movement deviates somewhat from traditional Elliott Wave Theory, as wave B has developed in an "irregular" manner, forming higher highs compared to the preceding impulse. This observation is made possible with the assistance of oscillators using the correct configuration.
How to navigate this phase? I expect a further short-term correction that aligns with the formation of wave C. Currently, it is challenging to determine whether the retracement will be significant or not. The future development will also impact the formation of the upcoming wave 4. Rather than risking a short position, it is suggested to await a long entry signal to capitalize on the strength of the next wave impulse of 3 < 1 < 5. The signal, in this case, will be provided by the divergence between RSI and the price chart, as well as the breaking of dynamic and static resistances on the RSI. These will be the market entry signals. Take profit levels will be in the > 50k area, while the stop loss should be placed near the minimum levels touched by wave C.
How to navigate this phase? I expect a further short-term correction that aligns with the formation of wave C. Currently, it is challenging to determine whether the retracement will be significant or not. The future development will also impact the formation of the upcoming wave 4. Rather than risking a short position, it is suggested to await a long entry signal to capitalize on the strength of the next wave impulse of 3 < 1 < 5. The signal, in this case, will be provided by the divergence between RSI and the price chart, as well as the breaking of dynamic and static resistances on the RSI. These will be the market entry signals. Take profit levels will be in the > 50k area, while the stop loss should be placed near the minimum levels touched by wave C.
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