Bitcoin Elliott Wave analysis for 29/01/201

Bitcoin Elliott Wave analysis for 29/01/2019

The bullish impulsive count has been invalidated, more downside to come soon

The market has made a new local low at the level of $3,406, so the bullish impulsive scenario has been invalidated due to wave 1 and wave 2 overlap. This is why the next best count is a continuation of a correction to the downside in the form of a Double Zig-Zag pattern. The connector in wave X (brown) is now completed and the first wave down of the new part of the Zig-Zag has been done as well (wave A). Currently, the market is in progress of the wave B of the ZigZag and then the wave C is expected. The projected target for wave C is seen at the level of $3,223.

The nearest technical support is seen at the level of $3,385 and the nearest technical resistance is seen at the level of $3,438 and $3, 474. The key technical resistance is still the zone between the levels of $3,640 - $3, 676.

Trading recommendations:

All buy orders should be closed and now more buy orders should be open for now as the wave C to the downside is expected. The local corrective bounce in the wave B might be short-lived, so on the sell orders should be open during this cycle up. Any break out below the technical support at the level of $3,385 will only accelerate the losses towards the level of $3,233.

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The material has been provided by InstaForex Company - www.instaforex.com