Cryptos Dropping Through the Floorboards?
We are very close to key support in Bitcoin as I write this. We haven't quite hit the key fib level, although we have a completed 5 wave move off the B wave as shown on the 1-hour chart. We may have some extensions, but this is a good place to go long for a scalp, in my trading world. But this is not for everyone. The stop, $7085, is only about $500 below for BTC, which is very tight. And, honestly, if we violate the box at $7450, that's a warning. So, we really ideally hold here.
After the drop last night, which I count in white as a very weak b wave that didn't white extend to the a=c, I need to see 5 waves up over that high to believe that we can seek higher targets. How you trade depends on you. I personally am only going to scalp this, and gird my mind with the belief that we can break down, especially with a downside setup in so many coins appearing to be in progress.
With regard to Ethereum, I really only have a downside view of ETH right now. Sure it can sticksave, but we have about the best confirmation we can have with the invalidation of the leading diagonal, with the break of $546. So, I'm looking to not add to Ether until $360-330. And, the good news is there is a strong chance this is the final bottom.
But we need to see whether we get a strong bid there and an impulsive structure to the upside before we believe it is the final bottom. The actual micro structure of this final wave in Ether is an ABC in my view as it has a diagonal substructure off the May high, not with the wave 4 overlapping 1 but with the abc substructure. This will make the absolute bottom hard to pinpoint. But zoomed out, the area noted above is key from larger fibs. If that area does not hold, $230 and $130 will come into play. But the A=C off the January peak will then be stretched.
A conundrum to me is how Ether can be so close, and BTC so far from targets. Perhaps the WXY bottom in BTC is in play and we only see a wave 2 down in BTC. Again WXY is the normal means by which BTC bottoms so it is not as though I'm putting hope in something unorthodox. But it does need to be considered, especially if we hold support.