We may have reached our destination according to R.N. Elliot
Like we wrote about last week BTC is currently in a wave 5 scenario today with the help of our charts are going to make the case of where this final impulse wave will conclude.
“One way to forecast a fifth wave target with Elliott Wave is from the .618% extension area of the first & third waves combined measured against the high in the fourth wave.
The second way is wave five may be equal in length to the wave one. Simply either count the points or pips in the first wave or draw a line from the wave cycle peak preceding the beginning of the wave one to the ending of the wave one, then highlight it & drag the top of the line to the end of the wave four corrective cycle peak & check the price where the end of the line projects to give the wave five target as being equal.
The third way to get a wave five target is what we expect at a minimum… is an inverted 1.236% - 1.618% extension of the depth in the wave four measured up from the wave three lows to the peak of the wave four.” – Elliotwaveforecast .com
As stated above, a fifth wave usually extends .618%the length of wave three from the conclusion of wave four and can go up to 100% the size of wave three.
Our first chart is a daily candlestick of BTC futures showing that exact extension, and the area that the study calls for this bullish impulse wave to conclude is between $44,446 and $54,055. This means that the current bullish wave can terminate at any time and stretch as far as $54,000 before we begin a corrective cycle.
The other method for forecasting wave five-length is even more interesting because we have just reached the inverse 1.23% extension (-1.23%), which is at $50,871. We have plotted out on our third chart today. It tells us that we have just reached the area to look for the firth wave to conclude. This method states that it could go as far as an inverted 1.618% extension; however, that would break a cardinal Elliot wave rule that says that wave three cannot be the shortest of the impulse waves. Therefore, the current wave should conclude at any point between current pricing and could go as far as $54,000. However, since today’s high at $51,065 reached the 1.23% inverse extension on the nose, it looks to be signaling that we may have reached our destination and should now enter an A, B, C correction.