Disclosure: I am new with E.W theory. I would love to hear some feedback from other EW experts out there.
I am not sure if the a,b,c waves are just a correction phase, or the start of a downtrend. In this graph, I am assuming its just a giant correction, before we head up. (if I thought it was a trend change, then I would apply 1,2,3,4,5 as opposed to a,b,c)
Assuming that I marked my waves correctly, and that we do continue to head down, then we should at LEAST see a correction to the 385 zone. According to the en.wikipedia.org/wik...liott_wave_principle "Wave C is typically at least as large as wave A and often extends to 1.618 times wave A or beyond"
In this chart I have assumed wave C will be the same length, which also is a full 100% full fib retrace.
Fundamentally, it seems a little optimistic at this point in time, but fear of "the big correction", mixed with that cliche "return to the mean" chart getting passed around on reddit, maybe sprinkle some bad press in there, and this is totally possible.
But in the end, who knows with bitcoin.
Peace, and good luck.
EDIT: Since Gox's API is still acting up, here is the same idea but with BTC China:
I am not sure if the a,b,c waves are just a correction phase, or the start of a downtrend. In this graph, I am assuming its just a giant correction, before we head up. (if I thought it was a trend change, then I would apply 1,2,3,4,5 as opposed to a,b,c)
Assuming that I marked my waves correctly, and that we do continue to head down, then we should at LEAST see a correction to the 385 zone. According to the en.wikipedia.org/wik...liott_wave_principle "Wave C is typically at least as large as wave A and often extends to 1.618 times wave A or beyond"
In this chart I have assumed wave C will be the same length, which also is a full 100% full fib retrace.
Fundamentally, it seems a little optimistic at this point in time, but fear of "the big correction", mixed with that cliche "return to the mean" chart getting passed around on reddit, maybe sprinkle some bad press in there, and this is totally possible.
But in the end, who knows with bitcoin.
Peace, and good luck.
EDIT: Since Gox's API is still acting up, here is the same idea but with BTC China:
