Bitcoin How Much Higher Before The Turn?
Impulse waves (aka trend) unfold in two forms: motive waves which continue the trend further and corrective waves which should be self explanatory. When a 5th leg of a motive wave completes, what likely comes next is a corrective wave.
Right now, Bitcoin is in such a situation on a very large scale. Once the current wave completes, the next wave to follow is a broad Wave 4. This is what Gold has been in since the August peak.
How do we know if we are in a Wave 4? Certain support levels have to be taken out. 45K an 43K are minor supports that can signal the beginning of the broader corrective move. IF 34K is taken out, that will be confirmation that a broad Wave 4 is in play and can linger for months.
The initial wave can appear very bearish but keep in mind it will take a lot in order to change the broader bullish trend. How will we adjust? We don’t short Bitcoin so that is not an option. We will be more selective about our entry levels for longs, because there will be many buy attempts. We will also adjust our profit targets to much more conservative expectations because what is characteristic of Wave 4 is lack of follow through.
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