In this scenario, the August rally is likely to have been a B-wave bounce, with a possible final C-wave reaching $44,000-$48,000, to complete a longer W-X-Y correction than has already been seen since the August low. On the chart, we have marked the critical levels for bears, which will indicate at what prices the current low is least likely to hold. The first warning (in blue) is located around $59,500, the second at $65,120, among others.
So, while the price action is not ideal, we now have price-based parameters that will help us determine whether we will see lower prices first or whether the August 5 low, and even yesterday's low, will hold. Figure 2
