I was asked by a fan to post more educational ideas to enrich his learning experience. This one is for him – my in-depth analysis of why bitcoin is heading down using two of my favourite technical analysis tools – Fibbonacci and technical analysis.
Before we begin, to clarify Elliott wave terminology:
– ‘Grand Super Cycle‘ degree is usually found in monthly time frames
– ‘Super Cycle‘ degree is usually found in weekly time frames
– ‘Cycle‘ degree is usually found in daily time frames
I have mentioned this a few times before but for the benefit of those who have just joined the club, BITCOIN HAS COMPLETED WAVES 1-5 OF A GRAND SUPERCYCLE since its inception! It has almost completed subwave 5 of this grand super cycle which is where we are right now. As someone said, the party is over!
The GRAND super cycle for bitcoin is best viewed on a monthly chart (see below). Note the stoch RSI rise and decline of each “super cycle” of the GRAND Super Cycle from 0 to peak and back down to zero. It has taken years, but we finally got there with subwave 5 of this GRAND SUPERCYCLE almost complete.
The good news is…it has yet to complete the final “cycle” (or subwave 5) of this Super Cycle (which started on Dec ’18). Yes I know it’s confusing. Take a deep breath and read it again…slowly.
The extension to subwave 3 which occurred from the 9th to 24th June of the current super cycle (which started Dec ’18) was just that – an extension. It was WRONG. What do I mean by wrong? Parabolic. Parabolic is WRONG and it will ALWAYS correct. Never believe anyone who tells you it won’t or that it will keep rising!
A perfect example of a similar correction was the extension to subwave 3 (that ended December ’17) of the previous super cycle. You can see how it corrected there.
Watch this play out on YouTube:
In the extension of subwave 3 and in the post-subwave 3 triangle correction of this super cycle, Papa Bear used the following areas of support:
8500 – which is the 0.5 fibb of this super cycle
9165 – which is the base of the corrective triangle.
Papa Bear should linger around the area above for a “little” while before breaking down to the following areas surrounding subwave 4 (shaded areas on the chart in light red/pink):
7200 – 0.618 fibb of this super cycle
7500 – end of subwave 4 of this super cycle
It is this area that I believe is the best buy area for the start of subwave 5 of this super cycle. As to the exact buy in position and sell signals for subwave 5, this is information available to Purple Crypto Premium members.
From the Gann fan on the chart, Papa Bear is trying to maintain a 1/1 trajectory, although it is edging down slightly into the 1/2 territory. It is hard to say how quickly it will reach said levels above. Drawing from how it has corrected more recently, it looks like it will try very hard to stay in the 1/1 territory, dragging out the duration of its correction before the start of the subwave 5 cycle (people are finding it hard to let go :)). The purple ‘Xs’ mark points of confluence between the fibbs and the gann fan on the 1/1 trajectory.
Following the end of subwave 5 cycle, which also completes the GRAND SUPER CYCLE, I expect an A-B-C correction. Read my previous posts below on this.
It’s not all doom and gloom for cryptocurrency. There are coins out there that are in a different cycle to Bitcoin. We just have to dig deep to find them, and undertake proper and thorough analyses (the art of technical analysis) before buying in.
Please share your thoughts below. Follow me on Telegram to receive updates. And one last thing – never believe in “parabolic” growth.
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Trading View link: https://www.tradingview.com/chart/BTCUSD/zlZkbSZq-Why-Bitcoin-is-Heading-Down-Are-We-There-Yet/