Bitcoin (BTC) overnight price action is adhereing to carving out the subwaves of blue wave (3). While there is a current bounce, the frenzied capitulation phase could be taking a breather. Once blue wave 3 completes, a larger bounce is expected to ensue. I personally don't try and trade these bounces...it's too much of day trading. And such never works consistently.
I've drawn out the 1.62 x blue wave 1 length using vertical lines. This would be the first level projection for blue wave 3 in an alternate count with a second landing zone. From a Fibonacci standpoint, this price distance measurement fits well. Recall that wave lengths are always measure in price distance, never in time distance. This way, wave 2 could take alot longer than wave 1 in time, but remains much shorter in price. Confusing wave length with time is a common Elliott Wave newbie mistake.
Here is the bullish alternate count where the five waves down for red wave C could be complete. If so, it could look like this as if blue wave 1 was extended. However, this would not be my primary count, just a second alternate but still good to keep in the awareness zone.
Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
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Tutorial on the use of Fibonacci & Elliott Waves
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