Bottom in Process

This pattern that we see here in most coins is well known by EWT long-timers. But I want to write this level of basics since I know many are new to Elliott Wave Analysis. This pattern we're seeing is the beginning of a bottom. Although on just about every chart I see, one more low (OML) is needed to make the pattern more orthodox. If we bottomed here, most charts will put in an WXY which is a label used when the third wave in a correction does itself have three waves. Regardless, though we have the bottom of sorts forming. Even now, most charts have technical divergence formed prior to the recent rise. 

Further, BTC really has more room, at least $3,000 of it at least, to continue correcting without breaking its long term bull market trend. Knowing that makes me cautious. However, despite OML looking orthodox, I won't fight a proper five wave move out of this region. I'll be watching for that on the charts over the next 24-48 hours. If so, we may have a bottom or sorts. 

The next level of concern will be the B wave zone. Because many charts still have room to fall, I do want to watch for a B wave top that continues the correction. That should be a nice relief rally to cut down some positions. However, if we get a very healthy 5 wave move over the .618 retrace of this correction I will call the final bottom in, and be looking up. Up towards $30K BTC, and even $65K if the market should choose. 

Ryan Wilday hosts the Cryptocurrency Trading service on ElliottWaveTrader.net.