The Law of Diminishing Returns state that there will be diminishing returns, BUT that also includes diminishing downside risk as well. Keep in mind that we haven’t confirmed a close below the previous ATH. We have wicked below 19k but we never closed below it on the Monthly. As you can see here, we have a Wave C bottom at the 17k support zone. BTC has dropped 75% from its ATH down to the .786 fib level that dates back to BTC’s Wave 1 move which began in early 2019. The 17k-28k region could be a great opportunity to short and long. The bears will keep trying to short 17k and the bulls will keep longing 28k. I see us pumping and dumping in this zone for a couple of months. This will keep trapping the late shorters and longers. I will be full on bullish after we close a weekly above 34k. Ultimately, I believe we will bottom this year and this will be a thing of the past.
This chart based off of The Elliot Wave Theory, Fibonacci, EMA’s, MacD , RSI , Momentum, and resistance/support zones combined with patterns.
This chart based off of The Elliot Wave Theory, Fibonacci, EMA’s, MacD , RSI , Momentum, and resistance/support zones combined with patterns.