BTC/USD: Advanced Elliott Wave Correction Analysis 1H (Aug.04)

X Force Global Analysis:


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In this post, we analyze Bitcoin's hourly chart using Elliott wave theories.

Analysis

- To begin with, it could be said that the Elliott Impulse Waves (12345) on the minor scale (marked in orange) are complete
- Wave 4 is clearly consisted of minute Elliott Corrective Waves (ABC), marked in yellow
- Wave 5 also shows a clear uptrend of impulse waves on the minute scale
- As we seek to correct, we correct in Elliott Double Combo Waves (WXY), which is also consisted of double combo waves
- We have seen a rejection of wave X at the 0.618 Fibonacci retracement resistance around 11.5k
- Based on Elliott waves, a final corrective wave is anticipated

Market Sentiment:

Long short ratios are at 72 to 28, with significantly more long positions than shorts. While bullish sentiment is reasonable, excessive amounts of long positions could be a red flag, and an strong supporting evidence of the contrarian theory.

What We Believe

We believe that a corrective wave is highly likely to play out based not only on technical indicators, but also short term Elliott Waves as counted above.

Let us know what you think in the comment section below


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