Why Goldman Sachs Analysts Said What They Said - Round II
Halftime is over and here I am with the second part of my trading idea about the Goldman Sachs prediction (see my previous idea). What GS didn't tell us was in which way we were going to go down towards the 2k mark. And it looks like I did a good job at predicting Wave B, "the bounce", for the $3000 level. The only thing that doesn't look good on my previous chart is the time frame - on the other hand I never claimed to be able to predict when exactly something is going to happen. So this is what this new chart is for:
With the adjusted time frame we can see exactly what happened: After Wave A bottomed out at around $3000 the predicted Wave B unfolded in 3 major waves, two counter trend (up) and one with the trend (down). On my previous chart Wave B was shown to reach a high of ~$4000. It then reached a high of ~4120, which is good enough for me, since it had a potential to reach ~$4200. But it just wasn't strong enough to unfold its full potential. If you are still waiting for Wave B to go further up, you should probably stop waiting, because it seems to be clear now that Wave B is over. If you know something about Elliott Waves or have looked at my previous idea you will know that after Wave B comes Wave C. In a zigzag correction like this one, Wave C will probably go way past the bottom of Wave A, meaning that we might see Bitcoin go below $3000 very soon.
Wave C has started slowly. For many it wasn't clear that we were going down at first, but now it's starting to become obvious. What I like about the start of this Wave C is that it's a good example to show that the market does not need to be fed bad news constantly in order to go down. The circumstances are the same under which the market moved from $3000 to over $4000 in Wave B, but now it's going down nonetheless. News don't move markets - markets decide whether to move based on news or not. And I am pretty sure that in the following days the market will take any news as an excuse to move further down.
This Wave C will probably go down past $2500. The reversal zone shown on the chart should only be a rough reference. We should not be looking for an exact number, because the truth is that anything can happen. What I mean is: You don't want to miss out on the party waiting for $2200 while the market reverses at $2400. Personally I think that it won't be a bad idea if I buy Bitcoin anywhere between $2100 - $2400.
Conclusion: Wave B, the big move up, is most definitely over. Don't get caught in the little bounces that will come every now and then. According to this analysis the price is going down.
With the adjusted time frame we can see exactly what happened: After Wave A bottomed out at around $3000 the predicted Wave B unfolded in 3 major waves, two counter trend (up) and one with the trend (down). On my previous chart Wave B was shown to reach a high of ~$4000. It then reached a high of ~4120, which is good enough for me, since it had a potential to reach ~$4200. But it just wasn't strong enough to unfold its full potential. If you are still waiting for Wave B to go further up, you should probably stop waiting, because it seems to be clear now that Wave B is over. If you know something about Elliott Waves or have looked at my previous idea you will know that after Wave B comes Wave C. In a zigzag correction like this one, Wave C will probably go way past the bottom of Wave A, meaning that we might see Bitcoin go below $3000 very soon.
Wave C has started slowly. For many it wasn't clear that we were going down at first, but now it's starting to become obvious. What I like about the start of this Wave C is that it's a good example to show that the market does not need to be fed bad news constantly in order to go down. The circumstances are the same under which the market moved from $3000 to over $4000 in Wave B, but now it's going down nonetheless. News don't move markets - markets decide whether to move based on news or not. And I am pretty sure that in the following days the market will take any news as an excuse to move further down.
This Wave C will probably go down past $2500. The reversal zone shown on the chart should only be a rough reference. We should not be looking for an exact number, because the truth is that anything can happen. What I mean is: You don't want to miss out on the party waiting for $2200 while the market reverses at $2400. Personally I think that it won't be a bad idea if I buy Bitcoin anywhere between $2100 - $2400.
Conclusion: Wave B, the big move up, is most definitely over. Don't get caught in the little bounces that will come every now and then. According to this analysis the price is going down.
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