- Technical Analysis 101 - 

Why BitShares has bottomed and potential Price Targets for 2018.

Since last July, the Altcoin market somewhat crashed. - Inside this crazy slaughterhouse, some Coins were hurt and suffered more than others. - That's the case of BitShares ( BTS ) who lost more than 75% of its value since last June.

BitShares : How Low Can It Go ?

How low can BitShares go ? - Has BitShares finally bottomed ? - Is BitShares ever going to recover ?

To answer those questions one must look and listen carefully at what the technicals are saying.

 

What has always made me laugh is the fact that when you suggest to someone to buy an asset ( or a security ) that has  tremendously gone up in value ( like Bitcoin, for instance ), people will often react by saying that the price is just too high.

Then, when you suggest that they buy an asset that has significantly dropped in price ( like BitShares ), they think you are crazy. 

Personally, I like to Buy Low and Sell High... but that's just me !

So. Let's take a look at the Technicals of BitShares to see if the Price has finally bottomed.

On this Graph, you can clearly see a full Elliott Wave Cycle.

First, there was a very strong 5-wave impulse that lead to a return of over 800% in June. ( ... and some people are still confused about the long-term, overall direction of this Graph... Come on ! )

Notice how the fifth wave extended... and, even within this fifth wave, the fifth sub-wave also extended !

This was already a sign that the coming correction was going to be, both, complex and severe !

----------

Indeed, the correction was a complex, double zig-zag ( also called WXY )

Usually, a zig-zag correction ( or a double zig-zag or a triple zig-zag ) almost never ends before reaching the previous low of wave 4.

The first Zig-Zag ( called W ) reached the low of sub-wave 2. Which is, sometimes, sufficient to end the correction.

That's why, after, the market rebounded... but the price was still stuck in a consolidation pattern called a triangle.

Usually, a symmetrical triangle - like this one - is a continuation pattern and, in this case, implies that the complex correction is not over. ( That's why we had this final Y zig-zag )

This final Y Zig-Zag ( that ended at $0.044 - or at the low of Wave 4 ) is the sign that the correction has finally ended! 

According to Elliott Wave theory, from now on... we should see a consolidation pattern ( called an A-B Base ) which will eventually lead to another upward cycle.

Notice how the MACD shows a BULLISH DIVERGENCE.

The AB Base will lead to another massive upward cycle.

This AB Base will act as the consolidation/accumulation pattern (  think rounding bottom ) that will lead to another upward cycle.

It wouldn't surprise me to see a rounding bottom forming.

The first target, for me, is around $0.35 for January 2018. 

The second, which will be the all-time high of the 2nd cycle ( or third wave ) will be $0.66. -

I am unable now to make a prediction on when the third wave ( 2nd Cycle ) will reach its peak.

But, my gut feeling tells me... that it should be before summer of 2018.

Stay tuned.