$BTC today made a powerful bearish statement by forming a Bearish Engulfing and closing below 8 EMA line. The bearish odds are very high and continuation down is very likely tomorrow. Let’s explore the hypothesis.
The chart above was designed in the end of March 2021, when $BTC was topping. All original graphical elements and targets remain unchanged. I’m just adding more details with time.
The Bearish Engulfing is the strongest 2-candle formation when it is well supported by technical indicators. It looks like the combo today falls into this category.
Some conservative folks recommend that a confirmation is required, however, the odds are quite high already. If BTC closes with a red candle tomorrow, the trend down is almost guaranteed.
There are so many possible outcomes for the weekly and monthly candles that I am going to wait until Aug 28 and 31 respectively to interpret the final ones.
Odds: Strong Bearish
ELLIOTT WAVES AND FORECAST
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