Overview:
Timeframes: The chart is split into a daily (left) and a 4-hour (right) view.
Primary Zones: Price levels are outlined around $73,805.27, $82,180.57, and key extensions above $100,000.
Phase Identification: The chart references Wyckoff methodology phases and potential distribution/consolidation areas.
Main Concepts:
Wave Structure & Elliott Wave Theory:
The charts display detailed wave counts, focusing on completed waves and potential future moves.
The daily chart suggests an ongoing upward movement potentially nearing the end of a major wave structure.
The 4-hour chart shows a corrective pattern potentially setting up for a further push to the upside.
Fibonacci Extensions & Retracements:
The left side highlights Fibonacci levels like 2.618 ($94,157.96) and 2.236 ($88,089.46) as targets for extensions of Wave 3.
The right chart suggests retracement levels that may act as areas of confluence for future moves.
Wyckoff Phases & Distribution:
The daily chart refers to a potential UT (Upthrust) in Phase B, indicating a possible distribution zone.
Phase B and C analysis identifies areas where a significant price shift could occur.
Divergences & Confluence Zones:
The 4-hour chart points out Divergence C at $82,180.57, which could signal a potential shift in momentum.
Confluence with retracement zones supports the idea of corrective or continuation patterns.
Invalidation Points:
Clear invalidation markers are provided: the right chart specifies $90,331.94 as an invalidation point for Wave B.
The left chart indicates support lines, such as $77,754.50 (0.382 Fibonacci level), which is critical for maintaining bullish momentum.
Step-by-Step Breakdown:
Left Chart (Daily):
Upward Movement: Ongoing push into higher Fibonacci extensions signals strong upward momentum, but with signs of potential slowing.
Distribution Warning: The chart shows signs that the current move might enter a distribution phase, suggesting potential for a future retracement.
Right Chart (4-Hour):
Corrective Waves: The chart maps out an (A)-(B)-(C) correction, showing a structure that could turn into a larger impulse wave.
Potential Upside: The projection hints at an upward move reaching higher Fibonacci targets once current corrective patterns resolve.
Divergence Indications: Divergence at the $82,180.57 level points to a possible trend reversal or bounce.
Common Mistakes and Tips:
Focusing Only on Single Timeframes: Combining multiple timeframes helps understand the broader context of price movements.
Ignoring Invalidation Points: These serve as essential stop markers for risk management, so adhering to them is critical.
Key Takeaways:
Potential Resistance: $94,157.96 and above may serve as targets if bullish momentum continues.
Support Zones: $77,754.50 and lower levels ($68,136.37) are key for maintaining bullish bias.
Next Steps: Monitoring price action around $82,180.57 and any divergences that develop could provide early signs of a move.