Today we will take a look at the Renko Chart, this chart can show us trend reversal zones, it is very helpful in making Trend Analysis. Currently, we can see an Eliott Waves pattern, cycle 1-5 began at the $11000 and finished at the $3500. After the 1-5 wave, we usually see a correctional wave ABC, or a reversal wave 1-5. Both cycles have two trend waves at the beginning and a correctional wave between them, but in 1-5 cycle next comes one more correctional and one more trend wave.
Thus, 0A=01 (Trend wave), AB=12 (Correction wave), BC=23 (Trend wave). In any case, after the 0A=12 wave, we can see a correction. At this point we could finish the analysis and tell that now we should open a SHORT position, BUT
There arises a question: "why the reversal should appear NOW, but not later?". First of all, advise you to read my previous ideas, but in case it is not enough - pay attention to circles at the chart.
These patterns are a kind of "reversal candle patterns Renko", usually traders use them not very often because of their accuracy, it is not high, only 87%(according to statistics). Fundamentally, they depict a market behaviour, should it go to a correction or catch a trend reversal. This time they show us that the wave AB=12 starts from the actual points. The target of this movement is located in the $6000, from where we will continue moving within the uptrend to the $9000 area.
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I also expect a pull back to 6k at least. This is all part of a very healthy correction (short term profit taking) after a parabolic growth. What has really got me worried though is my latest long term pattern that suggest that the price "needs" to touch a specific Fibonacci line before rebounding.