Checking out the 4 hour chart on Bitstamp. We have reason to believe the top to be in and a correction about to start. The 4 hour candle is not finished yet but its very likely that we going to get a reversal candle with a upper wick of profit taking.
Two weeks ago i put out a chart where i shown the black wave 3 to be finished at around 7,800 and wave 5 to finally end up around 8,200. Well, i didn't get the numbers exactly, but for me its close enough to make my decisions. There is another way to label the last set of sub waves which makes another high possible but i don't see this coming due t the candle which is forming and as well the fact that the longs are closing the contracts in big matter. We haven't seen yet a big rise in shorts, but i think traders will wait for break of a key level to get confirmation first before they go short.
Short yesterday: 20,516 contracts and today 21,532 = rise of 1,016
Longs yesterday: 36,700 contracts and today 27,228 = drop of 9,475
It would be great to see BTC staying above the black descending trendline, but due to Elliot wave rules i marked out two light blue lines where the first one is the minimum level and the second a usual level for BTC. I can see the minimum level to hold but we have to get more data first.
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