We might currently be seeing one of the most challenging corrective patterns in EW theory.
After beginning its corrective move up in the vicinity of 3200$ in what we must assume is an pattern, BITFINEX:BTCUSD topped at 4382$ entering a phase of complex correction. If the count is correct, we are now in wave E of a symmetrical triangle formed by an ABCDE correction in a higher degree correction.
The first three of the lower degree correction, wave (A), was an corrective pattern with leg B forming a Symmetrical triangle, whilst the second three (B) was a simple correction with a thrust due to the closing of BTC contracts forming somewhat of a fake-out and thus a bull trap. Leg (C) formed a with leg (D) moving up to the golden Ratio of leg (A). We might now witness a move down (E) with a retest of the lower trend-line forming the bottom of this symmetrical triangle.
In the scenario BTC might pick up the correction on the higher degree. The target of the measured move (C) would be around 4440$, which would amount to a 61.8% of (A) and converges nicely with 0.382 fib ratio of the impulse all the way from the vicinity of 6000$ and coincides with previous resistance levels.
In the scenario BTC would fail to move beyond the previous of 4382 (teal line) and we would see a running flat (rare) entering a new strong move to retest the of 3000$.
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