In this analysis we presume three things:
1) We are on Elliott's wave "a".
2) Wave "a" will be overextended and will reach 100% retracement.
3) BTC is forming the head of a SHS
Thus, the SHS gives us the estimate of the final downward movement and Elliott gives us the following waves "b" and "c".
Both observations confluence a decline in the price of BTC back to $40K resistance in about 25 days.
Notes:
The circle in orange indicates the usual 61.8% retracement of "a" wave.
The circle in green is where 100% retracement would be expected to make the SHS formation effective.
1) We are on Elliott's wave "a".
2) Wave "a" will be overextended and will reach 100% retracement.
3) BTC is forming the head of a SHS
Thus, the SHS gives us the estimate of the final downward movement and Elliott gives us the following waves "b" and "c".
Both observations confluence a decline in the price of BTC back to $40K resistance in about 25 days.
Notes:
The circle in orange indicates the usual 61.8% retracement of "a" wave.
The circle in green is where 100% retracement would be expected to make the SHS formation effective.
