Price most of the time after an extended move retraced back to the moving average and use them as a dynamic support/resistance.
From the Bitcoin Weekly chart above, we could see how price snaps back sharply below the 200 EMA at the point where the majority are anticipating the breakout of a wedge pattern in the 2018/2019 corrective phase.
We're facing the same scenario right now, the price is trading within a Flag pattern, we will most likely to see a sell-off to the 200 EMA that lined up with 78.6% ($5500) Fibonacci of the 2019 rally. If we get this decline, wave 2 corrective structure will be considered complete and the major rally should begin.
The potential minimum target for wave 3 is 1.618x wave 1 according to Elliot Wave principle, that level is around ~$23000 area considering we get the decline.
What do you think about the Mean Value Analysis?
Thanks for reading!
Vee.
From the Bitcoin Weekly chart above, we could see how price snaps back sharply below the 200 EMA at the point where the majority are anticipating the breakout of a wedge pattern in the 2018/2019 corrective phase.
We're facing the same scenario right now, the price is trading within a Flag pattern, we will most likely to see a sell-off to the 200 EMA that lined up with 78.6% ($5500) Fibonacci of the 2019 rally. If we get this decline, wave 2 corrective structure will be considered complete and the major rally should begin.
The potential minimum target for wave 3 is 1.618x wave 1 according to Elliot Wave principle, that level is around ~$23000 area considering we get the decline.
What do you think about the Mean Value Analysis?
Thanks for reading!
Vee.
