After yesterday’s bearish statement, BTC decided to take a pause today and the candle can tell a great story about it.
While the candle looked like a Morning Star, the upper wick of it bigger than the lower one and it says about greater bearish pressure. At the same time, the candle closed below the 20 EMA line and we have two days in a row below 20 EMA.
The candle also closed below the mid point of the green weekly candle – below 55051.00. This is not final yet from the weekly perspective, but it is a statement.
If tomorrow’s candle makes a small body of any color and again under the 20 EMA line , I would be expecting a rather strong sell off on Thursday or Friday.
From the Elliott Waves perspective, the coin already touched the targeted area and, technically, the whole correction could be over. However, the candles speak that there is some downside movement is still expected.
I view that BTC could continue within the green channel. The wave count is still preliminary and could be updated along with the channel as soon as I can see more data points.
I am gaining more confidence that BTC in in a major corrective cycle that started on March 14 and which was called on March 15 here: