Nightly Crypto Report: Testing C Wave Resistance

GBTC during premarket went straight into C wave resistance. If it gets through today’s premarket high at $8.83, I’ll at least need to be short-term bullish. But the overall price action is quite messy, so structure for such a count is not clear at the moment. I just know that level is key resistance.

In studying BTC further, if we have a break of $7023 we have a failed impulse because currently we have three waves. However, I like the structure here for a WXY shown in this slight red modification. This means we can see a low B in the $6K’s. Below $6625 suggests we’re taking the direct route down. I have to say I really like this count in the current structure and we see similar structures in Bitcoin as this count quite often. But this is intuitive until we have an impulse to start C.

I’ve filled out a red count in Ether. It has potential five waves, and I have room for a wave two down to $120. I also like this count. Further, it makes much sense with ETHBTC entering the lower support region. I’m watching for that pair to reverse anytime.

Here is my extended write-up from yesterday on Bitcoin:

While we expected a move off recent lows, and I even cautiously went long, this move higher is unexpected. But Houston, we have a problem. By and large we completed three waves lower, not five. This means we really can’t trust our bottom. We’ve been here before. This same structure has shown at various bottoms in this correction, important and minor. And where did get us? A correction that continued lower. This is no different. 

While I can loosely hang on to white count in Bitcoin, we are through the channel. I do not trust expanding diagonals a structure in cryptos. I have NEVER seen one complete. So, getting that white 5 down, may now be unlikely. But because we bottomed in three waves, where does that leave us? It leaves us with a probable ride back up in red C. And, I’ll hold to that view as long as below $8300. This means we can rally to high…

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