$BTC

In wave theory, many people may have come across or just encountered a misconception that the fourth wave retracement cannot break below the high point of the first wave. Saying it this way is basically correct, but that is the original text of the Elliott Wave Theory, and it is no longer applicable in the current market. If you apply wave theory in practice, you will find that a large number of fourth wave retracements actually break below the high point of the first wave. So, the current wave theory does not have the hard rule that the fourth wave cannot break below the high point of the first wave.

Yesterday's interest rate meeting, as I expected, resulted in a 25 basis point rate cut. There was a slight upward spike, but the magnitude and volatility were small.

So what if you didn't catch 77800? You can still place an order for half of your usual position at 77800 and add to half of your usual position here at 79700; you can still place an order at this position without any issues.

Yesterday, I categorized this entire segment of the four-hour chart as the fifth wave. This morning, it broke above 76400, so the wave pattern has changed, and this segment should be considered a new ascending eighth wave at the four-hour level.

Now we are in the fifth wave extension with a fourth wave retracement, so the subsequent movement will likely see the fifth wave pushing up. The magnitude of this fifth wave will not be very large; it will pierce through 76900, which is the high point from yesterday.

So now there are two options:

1. Keep placing half of your usual position at 77800 and add half of your usual position at 79700.

2. If it goes above 76900, you can open half of your usual position to short and then add half of your usual position at 79700.

Set the take profit around 73000.

As for the stop loss, we'll see if it hits the added position.