On Thursday, we showed you how Elliott Wave analysis paved the way for Bitcoin to drop to $ 7,700 in ten days before Mark Zuckerberg's testimony about Libra. At the time of writing, the cryptocurrency barely held above $ 7,400, and many thought it was prone to decline even more. Since Bitcoin is one of our premium tools, we intentionally left some information two days ago. Traders familiar with the basic rules of the Elliott Wave Principle must have understood this for themselves. The information that we hid was available to our subscribers on October 16. On that day, they received the schedule that you see below. It shows that Bitcoin's 40% growth over the past 12 hours did not appear unexpectedly.
One of the basic rules of Elliott waves is thateach five-wave impulse is followed by movement in the opposite direction. The decline in bitcoins from $ 10,949 looked almost like an impulse pattern. Wave 5 was the last missing piece. That is why ten days ago we thought that "as soon as wave 5 is over, there should be a bullish reversal ...". Of course, there was no way to predict the speed and severity of recovery. In addition, we thought that resistance at around $ 8800 would at least slow the bulls for a while. Well, we didn’t get it right, as the updated chart below proves. The important thing is that the analysis of Elliott waves prepared us for a bullish reversal at a time when most traders were extremely bearish.
Wave 5 ended at $ 7,293 on October 23. We did not know that at that time it would be the bottom, but in any case, fishing the bottom is not a good idea. The important thing was that the decline from $ 10,949 could already be seen as a full five-wave impulse. From the point of view of the wave operator, this meant that in the region of 7300 dollars there was no place for short positions. At the time of this writing, BTCUSD is hovering around $ 9,300 after jumping to $ 10,350. Now, instead of looking for external factors explaining the surreal growth of Bitcoin, it's time to focus on patterns again. If the pattern managed to warn us in this reversal, perhaps the pattern will warn us in the next.
transfer from here
Now the wave book “Elliott Wave Principle” can be found here for free