The low recorded on August 5th remains intact, and as long as it persists, the (grey) wave i, ii setup, as shown, can continue to develop. These grey waves W-i and W-ii, composed of three waves each, could form part of a final diagonal 5th wave. At yesterday's low, the price recovered almost 61.80% of the potential W-i rally, a characteristic level of a 2nd wave.
However, BTC/USD is still below its descending Ichimoku cloud, as well as the 10-day, 20-day, 50-day, and 200-day simple moving averages, all of which are sloping down. Therefore, the current trend on the chart remains entirely bearish, and the bulls still have a long way to go.
To confirm the start of the grey W-iii, a break above the late August high located at $65,120 is needed. This critical support/resistance level would allow BTC/USD to break above the cloud and the moving averages.
In our previous update, we noted that “if the August 5 low has shown anything, it is that this year’s price action is puzzling.” This observation still holds true. Currently, the third warning level for bulls (orange) holds. However, if this level is lost, we will need to re-examine the support at $40,000.#Bitcoin $BTC figure 1👇
