Bitcoin - I warned bulls to get prepared for a pullback.
In my last update on February 19 I warned bulls:
"Today, after 30% quick gain off the bottom I want you to cool down. I am still bullish on Bitcoin .
But we got wave i up of a larger wave ( c ) up. We may get now a pretty deep corrective wave ii down targeting 3,600. "
I count a-b-c move up that topped around 4,280 this night as a completed wave i up off the December 2018 bottom.
Off that top we should a corrective wave ii down shaped as a-b-c.
This current drop into 3,820 is clearly only the first leg down in wave a of ii.
Despite the fact we should get a corrective wave b up and that could get as high as the previous top over 4,000 I would encourage you not to take your chances and wait for a corrective wave b up to top and then you may try to short Bitcoin for the final leg of corrective decline in wave c of ii down. The reason is that wave b is the least reliable wave. It can get as shallow as 23.6% of the preceding drop and you will not be able to close your long.
My expectations have not changed. The ideal target for that final decline in wave c of ii is between 3,610 and 3,530. This is where I will start loading bitcoin again. Because off that low we will see a rally in wave a of iii of ( c ) up that should target 4,550 - 4,650
"Today, after 30% quick gain off the bottom I want you to cool down. I am still bullish on Bitcoin .
But we got wave i up of a larger wave ( c ) up. We may get now a pretty deep corrective wave ii down targeting 3,600. "
I count a-b-c move up that topped around 4,280 this night as a completed wave i up off the December 2018 bottom.
Off that top we should a corrective wave ii down shaped as a-b-c.
This current drop into 3,820 is clearly only the first leg down in wave a of ii.
Despite the fact we should get a corrective wave b up and that could get as high as the previous top over 4,000 I would encourage you not to take your chances and wait for a corrective wave b up to top and then you may try to short Bitcoin for the final leg of corrective decline in wave c of ii down. The reason is that wave b is the least reliable wave. It can get as shallow as 23.6% of the preceding drop and you will not be able to close your long.
My expectations have not changed. The ideal target for that final decline in wave c of ii is between 3,610 and 3,530. This is where I will start loading bitcoin again. Because off that low we will see a rally in wave a of iii of ( c ) up that should target 4,550 - 4,650
