BTC Wave C Zoom In @ Crappy Trader Notes #5

BTCUSD pair seems to be riding the downtrend storm. In this issue we will use multiple lenses to assess most probable price scenario. So let’s have a closer look at it in a new issue of the @ Crappy Trader Notes.

In the previous issue ( Crappy Trader Notes #4 ) I warned about possible C wave down move for the BTCUSD pair. It seemed more probable than move up continuation. Price data from recent weeks provide strong evidence that the C move is unveiling indeed so bearish future is most probable provided there is no price twist in a near future.

So let’s dive in to the rabbit hole and have a detailed look on the data.

Lense # 1 — most probable wave count

One should expect that the C wave will consist of five subwaves. In my opinion the Nov 10th — Dec 4th price movement was the first wave (W1) in the C five wave sequence. Moreover I see current trading range as corrective wave (W2) so one may expect that the third wave may unveil soon.

Lense #2 — volume behavior

One should expect volume behavior to support the C wave hypothesis. As the C wave should be the impulse wave we may expect that the volume grows on the down move and shrinks on the opposite direction. So take a look at a daily volume data — the pattern is clearly visible there.

Lense #3 — H&S pattern

One final perspective that paints a bearish picture is from a more traditional trading perspective. One possible interpretation of the price pattern is the Head And Shoulder price action. It means that we might be in a right shoulder position. Although I find the right shoulder disputable this is a red flag for sure and an additional argument for a continuation of the bearish scenario.

When confirmed it adds up to the overall bearish future for the BTCUSD pair.

Summary

I present three most probable outlooks on the BTCUSD price action that in overall paint a bearish picture. Nothing is for sure, however we’ll see what’s going on in a couple of days — as always.

Trade carefully & stay safe.

Keep liquidity for the best moment to enter long.

More reading

If you want to see how did i come to current predictions i recommend reading previous chapters of the blog. Therefore you can follow my reasoning and see how genuine my remarks are.

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Yenten Observer

Cryptocurrency freak. Freedom, ecology and free market above all.