Just after my post yesterday, we saw a spike up for wave 5 and ending up pretty much as expected close to the 7,800 resistance. As mentioned, everybody looking at this resistance, conservative traders placing the sell orders a little lower to be sure they can sell. In this matter we saw a spike to 7,700 and a lot of profit taking.
We follow so far my black lines from yesterday, but in a much faster paste as i expected. We are now in wave 4 and due to Elliot wave theory, wave 4 can end up in the 0.236 or 0.382 fib zone of wave 3. For BTC its not unusual either to correct to 0.5 or 0.618. But we seen a long correction in the black wave 2 which was down to 0.618 which makes a shorter correction in wave 4 likely. You can see my main count in the black drawn wave. But have in mind that we can even follow the black dotted line and make another touch on the blue support line and confirming in that case the yellow ascending triangle and the cloud as support.
The incoming wave 5 in Elliot wave theory can be 0.618, 1.0 or 1.246 of wave 1. A 0.618 will end pretty much again on the resistance of 7,800. This is a critical resistance to be broken and for me i can't see it be done in wave 5. We may break just above and start the next correction.
If you comfortable in playing this move it could be done as shown in my chart. Keep in mind the critical resistance at 7,800 and the descending intermediate resistance.
No one gets broke by taking profits. After 5 waves up we have to see another correction.. More on this is coming. First we need more data to be more accurate.
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