The last time I posted was to warn that btc and eth were in all likelihood going to fall further – probably much further. The question mark was, as always, on how far it would fall. Goldman had suggested the 4965 top was a wave 5 top, and other credible sources say it is a wave 3. While I tend to think it is a 5 rather than a 3, the correction was clearly going to be severe in either case.
This correction was entirely predictable many days before the news/rumors about bitcoin exchanges in China appeared. Within our chat community users were warned (repeatedly!) in the days leading to the top to get out of both eth and btc. After the first drop they were repeatedly warned not to succumb to fomo, as there was at least one more drop coming.
Then, last night at 5:45-6:30 pm China time (my time zone) the following posts were made to our users:
Then 15 minutes later the word went out to start buying:
The huge rallies began ~ 30 minutes later.
Several member of the group have reported that they bought at or near the lows in many coins. I was/am delighted to hear that of course.
So what is next?
BTC bounced off a 5th arc as expected, but it is struggling at the 1×1 at the time of writing. I am not yet sure if it will get through so my adice would be to take at least some profits here, in case another breakdown looms. (If Goldman’s wave count is correct, another leg down is likely coming!)
ETH also bounced off a 5th arc and is struggling at top of square. I would offer the same advice in re: ETH as I did with BTC. Take some off the table just in case.
BCH corrected much harder than I thought it would. It slid down that 2nd arc like it was covered with axle grease. Thankfully, it has gotten past that 1st arc now. In terms of EW theory, the correction seems to have stopped just short of the point of where it could not be counted as a wave 2 correction. An EP looms today, and I am cautiously optimistic that it will (finally) be a good day for BCH. We will see…
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.
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