We want to show you our view of a typical and perfect Elliott Wave setup on a lower timeframe.
So, as you can see, BTCUSD turned sharply from the highs and we can clearly count five waves down, which is our signal of a trend reversal and in Elliott wave theory is called an impulsive wave.
Then we can see a clear three-wave regular 3-3-5 correction, with three waves up into wave A, three waves down into wave B and five waves again up into wave C, that found resistance around the 17000 region.
As always, to find the right entry position, we always wait for confirmations. Confirmations are very important, because they signalize that we are on the right track, so in this case our confirmation would be a break beneath 14000 level, so if BTCUSD breaks under 14000 level, we expect even more weakness towards new lows, where next target can be around 8000 support level or maybe even lower.
As said above, we are bearish and will keep looking lower unless 20k is broken out. Then we may adjust the view.