As Nassim Taleb puts it, “to protect against the black swan”. Or as Goldman Sachs CEO Lloyd Blankfein says “given enough time, very low probability events not only can happen, but they absolutely will happen” [1].
This is a one in a hundred wave pattern, If I could share the image of a truncated wave example, I would (ewminteractive.com/truncated-fifth-wave-the-black-swan) . The image is of JPY/USD pair 4h time frame from October 2013 - January 2014, it is one of the best example of a truncated 5th wave. The patterns are similar to the 'T' on this chart. I predict that a side wave movement will occur and then a drop.
Then it will rally pass 13k after the drop. BTC is loading up nicely IMHO
myfix
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@NghililewangaHashaliHamukuaya, I agree, it is a log term long .
cblewis_78
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So from looking at this chart, it’s spot on. I guess my question now is what’s the goal for the chart. Is it (a) to predict targets for taking profits or (b) just for educational purpose only? I would argue that the 1-5 w/ a truncated Wave 5 offers an educational perspective but not much else. The (1)-(5) structure offers a better predictive anaylsis to where the overall market is headed when combined with analysis of other structures and usage of the fibs. This is great work but just curious to the objective? If the major wave is (1) - (5), where is BTC going and what is the target? Where would one take profits and the wait for the pullback and re-enter.
There is heavy resistance near 12.5K... so the “rally” beyond 13k is possible but unlikely when one combines the length of Wave (1) and overlay it to Wave (5) with the heavy resistance above. Will it exceed 13k... It “should given the inverse H&S height”. But not as a rally but more as delayed approach with a testing of 12.5 as (1)-(5) Waves will have completed here and followed by ABC correction that should retrace to the are of Wave (4) low. Then the new pulse wave will rally to at least the height of the inv H&S
I have to admit I did not see the truncated wave 5.