Bitcoin: Is This Another Buyable Pullback?

With Bitcoin (Bitfinex
USD) already down 25% from its recent all-time-high, it is very reasonable to ask if this mini-flash crash is another buying opportunity or if BTC should be avoided at all costs. Using the Elliott Wave Principle (EWP) and Technical Analyses (TA) combined, I will share some of my insights I provide daily to my premium cryptocurrency members. See my daily update video from last Friday here.

In my article from mid-December, I was looking for Bitcoin to reach $23,700+ based on a standard Fibonacci-based impulse pattern. Boy, did I get a lot more than bargained for: $40
K+. Indeed, as said in prior articles: in bull markets, upside surprises and downside disappoints.

So why did BTC trade so much higher?

Because it experienced an extended 5th of a 5th wave. They can always happen and are impossible to know beforehand: anticipate, monitor and adjust is all we can do. How to possibly trade them and not be left behind? Raise stops to prior day lows, take partial profits on the way up, and if stopped out but then the instrument moves to new highs again, buy the breakout. Ad infinitum, aka “rinse and repeat” until it stops working.

Figure 1: Daily Bitcoin candlestick chart, with detailed EWP count:

Bitcoin Daily Candlestick Chart With Detailed EWP count.

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