BTC Wave E of Contracting Triangle Appears to be Underway

Updated
Background:

Triangles are sideways price action and a contracting triangle can be described as the top line (B to D) is declining and the bottom line (A to C to E) is rising. The corrective structure is labeled as ABCDE.

Commentary:

Yesterday, we posted that we appeared to be in Wave E of a contracting triangle on the minor degree, which would be invalidated with a close greater than 37,449.

Today, we update the chart and consider that the daily candle made today may be the start of Wave E and not the day before.

Although our previous invalidation point was not taken out, our new invalidation price would be a close greater than 38,874.71

Strategy Moving Forward:

We will look for completion of Wave E and consider the next wave may be a larger move.

We will also keep in mind the apex of the triangle for future price movement and look for signals to enter a test of the apex.

Wave / Pattern Analysis:

We are looking at the recent high of 42,000 USD as the completion of wave 5 on the minor degree and possibly wave 3 of the intermediate degree.

We appear to be Wave E in a contracting triangle on the minor degree.

Weekly Momentum:

Weekly signal is still bearish

Daily Momentum:

Daily Momentum is still bearish

Trade Signal:

No daily signal was generated today.

Summary:

While we look for BTC to consolidate and go lower in the short term, we are not yet in a position to enter a trade.

Comment
Outlook changed:

BTC Contracting Triangle Outlook Changed to ZigZag
abcdeBTCUSDcontractingtriangleElliott WaveOscillators

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