Expect price to drop lower from current $33'708 level before buying back on an hourly close above $35'000
Expect price to retrace to $2'636 before dropping below $2'400 where we would look to buy, or to buy on an hourly close above $2'700
Last time we mentioned:
We continue to look for a move lower in 5 waves to complete wave (X) and would look to rebuy at levels above or on a break above $40'800. I believe we probably have a few more weeks of drifting lower to complete this larger correction
It is possible to count 5 waves down but I am not convinced with this count and think we could see a little lower first. We traded to the bottom of the channel and the $34k level that has been a focus for the last few weeks.
Given the divergence in the MACD I believe a low will be in place soon and would rather buy on an hourly close above $35k, to indicate that odds favour a low is in place. The low is expected to be confirmed with an hour close above $37k.
Last week we said:
Whilst below $3'025, we will look for lower with a daily close above $3'180 highlighting that the next leg higher is underway. Wave Y will be equal in length to wave w at $2'480 and we would buy there and add on a test of the downward channel
I believe that we haven’t quite completed the sell-off and am looking for a retracement to $2'636 to complete wave 4 before the final sell off. Look to buy below $2'400 or on an hourly close above $2'710. And lastly, place stops below the most recent lows.