Bitcoin/USD 13 august 2017.
Long lasting bitcoin rise since its market entry at early 2011 has
born a hope for a constant appreciation of this digital currency. In
present times this hope has become wide spreaded. Numerous mining
pools offers their shares, a wide range of producers makes and sells
mining hardware, many voices proclaim to buy bitcoins and to hold
them, as they should not get cheaper anyhow, more and more
companies prefer to make their deals in bitcoins rather, than US dollar
and other currencies. Can we say, that Bitcoin mania has spreaded too
wide ? Let us look at Bitcoin/USD chart.
Long term view at bitcoin rise. We can count arising impulsive
waves in sequence (1)-(2)-(3) with awaited waves (4) and (5).
Impulsive nature, non overlapped virgin space in the middle wave
and obvious form of the previous waves (1) and (2) allow us to name
the last long move as wave (3). Corrective triangle in wave 4 clearly
says, that wave (3) is in its last thrust up and we see the topping
process.
Yes, crowd opinion "Bitcoin rises and will rise" has spreaded
widely and points to the end of a high degree wave. The end of the
current move up is near. Time to take profit has come. It would be
wise to partially sell your cash coins, sell your mining hardware or
share in a mining pool, cut electricty consumption in your mining
farm and prepare for a deep correction in wave (4). At the end of
wave (4) we could reopen our BUYs once again.
Chart has been skipped.
First waves up, close look. Triangles help us to define waves boun-
daries.
Chart has been skipped.
The beginning of wave(3). First wave has tried to make its
usual task - to break through wave (1) top, correction - wave 2 -
directly falls below wave (1) top. Usual impulse behavior.
The middle and the end of wave (3). As we can see, this
part is the most complex one. Numerous three waves structures
inside the fourth wave suggest the most possible variant - wave 4
is a triangle, this triangle is not obvious, but we have chosen this
way, due to corrective nature of all its parts. Triangle in wave 4
also defines probable length of wave 5, often the fifth wave is as
long as long the widest part of triangle is, and wave 5 is already
long enough, adding more confidence in upcoming reverse.
Wave 4 more closely. You can offer another waves count, but
the main thought remains the same - here ends the fourth wave
inside wave (3). Next move up is the last one in wave (3), wave (3)
is ending. Long lasting rise in wave (3) is ending, prepare for a deep
and decisive move down in wave (4).
We assume triangle in wave 4 of wave (3). Usually fifth wave
has length of the widest part of triangle. As we can see the fifth
wave is close enough to this length. With every day and with every
step up the end of wave (3) becomes closer and closer. Time to
change your bullish behavior and take profit from all your previous
BUYs. Chart above shows our possible count for the last move up,
wave 5 may still climb a bit higher, but we are waiting for a top.
Bitcoin is ending its long and strong rise. A deep correction is
awaited.
