I love today’s closure, just few points below the pre-determined major resistance level of 51079. Yesterday, in my weekly update I mentioned that “if any daily candle does not close above 51079 (a midday spike allowed), I expect a downtrend to resume.”
Right after the daily closure the coin continued higher, riding the wave that I believe is wave C of (B). There are few possible developments and important points:
1. Based on Fibonacci levels, BTC could possibly go higher up to 52000-55000 overnight. However, as long as it closes tomorrow at 7 PM EST below 51079, the bearish pressure continues to prevail.
2. If this is indeed wave C of (B) and it advances to 53000-55000 before reversing, I would consider the whole wave (B) as a standard zigzag, followed by wave (C) that would be equal the length of wave (A) or a bit shorter.
3. If this wave C of (B) fails to advance to approximately 53000 and reverses, I would be viewing the zigzag as a truncated one. The consequences could be dire. The truncation could be followed by a sharp sell-off and a longer wave (C), possibly 1.618 of the length of wave (A) or even longer.
4. If BTC closes tomorrow with a green candle above 51079, a further advance would be indicated.
Let’s wait and see how the coin develops overnight. Tomorrow it could continue moving down to 39000 or, possibly, to 28000-30000.