Current Market Situation:
- Wave Structure: After the recent mini crash of about 5%, we are currently in the C wave of an ongoing ABC correction. The B wave is already completed, which now positions us in the impulsive phase of Wave C.
Wave Count Explanation:
- A Wave: This wave was cleanly divided into three sub-waves, typical for an A wave in an ABC correction pattern.
- B Wave: The B wave, which was initially considered unlikely to be oversized, is now complete and followed by a strong move into the C wave. The B wave was also composed of three waves, as expected.
- C Wave: The C wave we are currently in is exhibiting impulsive characteristics typical of a 3-3-5 structure. This implies we are in the final phase of the correction, and this wave could be the most aggressive in terms of price movement.
Technical Patterns and Indicators:
- Falling Wedge: The price continues to respect the falling wedge, which is a bullish reversal pattern. A breakout from this wedge is still anticipated.
- Bullish Divergence: A strong bullish divergence is developing on the RSI (Relative Strength Index), reinforcing the potential for a near-term bullish reversal.
- Open Interest Liquidations: Recent liquidations of long positions have cleared much of the overleveraged trading, providing more room for an upward move.
Fibonacci Levels:
- The key Fibonacci levels, such as the 0.618 retracement, are still holding, suggesting that buyers are stepping in at critical levels to maintain the bullish structure. These levels continue to play an essential role in the current price action.
Conclusion:
- Current Position: We are now in Wave C, which marks the final phase of the correction. The market is still respecting the falling wedge pattern, and the combination of bullish RSI divergence and liquidation of overleveraged positions suggests a potential bullish breakout.
- Short-Term Outlook: As we move further into Wave C, this impulsive move could see more volatility, with a likely target being a breakout from the wedge. All signs indicate that the current correction could soon be over, and a reversal may follow.
Be mindful of potential downside if the wedge fails to hold, but at the moment, the bullish scenario still holds as the most likely outcome.
Current Market Situation:
- Wave Structure: After the recent mini crash of about 5%, we are currently in the C wave of an ongoing ABC correction. The B wave is already completed, which now positions us in the impulsive phase of Wave C.
Wave Count Explanation:
- A Wave: This wave was cleanly divided into three sub-waves, typical for an A wave in an ABC correction pattern.
- B Wave: The B wave, which was initially considered unlikely to be oversized, is now complete and followed by a strong move into the C wave. The B wave was also composed of three waves, as expected.
- C Wave: The C wave we are currently in is exhibiting impulsive characteristics typical of a 3-3-5 structure. This implies we are in the final phase of the correction, and this wave could be the most aggressive in terms of price movement.
Technical Patterns and Indicators:
- Falling Wedge: The price continues to respect the falling wedge, which is a bullish reversal pattern. A breakout from this wedge is still anticipated.
- Bullish Divergence: A strong bullish divergence is developing on the RSI (Relative Strength Index), reinforcing the potential for a near-term bullish reversal.
- Open Interest Liquidations: Recent liquidations of long positions have cleared much of the overleveraged trading, providing more room for an upward move.
Fibonacci Levels:
- The key Fibonacci levels, such as the 0.618 retracement, are still holding, suggesting that buyers are stepping in at critical levels to maintain the bullish structure. These levels continue to play an essential role in the current price action.
Conclusion:
- Current Position: We are now in Wave C, which marks the final phase of the correction. The market is still respecting the falling wedge pattern, and the combination of bullish RSI divergence and liquidation of overleveraged positions suggests a potential bullish breakout.
- Short-Term Outlook: As we move further into Wave C, this impulsive move could see more volatility, with a likely target being a breakout from the wedge. All signs indicate that the current correction could soon be over, and a reversal may follow.
Be mindful of potential downside if the wedge fails to hold, but at the moment, the bullish scenario still holds as the most likely outcome.
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