Cryptocurrencies ready for a third wave?
This is not the time and place for an in-depth lesson on Elliot Wave Theory. There are numerous websites that offer these lessons freely, and often times the teacher is more astute than I in this art. If you are a trader, you owe it to yourself to learn this craft, as it is a great tool that is practical and true. Can you imagine someone calling themselves a chef, but they never learned how to bake bread? Traders should know some things, and Elliot is one of them.
Per Elliot, all markets move in waves of 5. In a bull market there are three waves up, separated by two waves down. The down waves are seen by traders as corrections or consolidations. Wave 3 is typically much larger than either waves 1 or wave 5. Elliot himself said that wave 3’s are often ‘awe-inspiring’.
I mention all this because I am of the opinion that the past few weeks most altcoins were in the early stages (wave 1) of a bull market. Wave 1 (for many) has ended and a wave 2 has commenced. Wave 2 was intense but short-lived. In many cases (imho), Wave 3 has either already commenced, or will commence soon. As insanely profitable as wave 1 was for many traders, the next wave might just be a story we will tell our grandchildren. Stay alert…
I note that XLM has made a series of higher highs and higher lows since it’s large selloff. This suggests that the trend is once again up. It’s cheap and could easily double in the near future.
Ethereum Classic is still being cooped up by a 3rd arc. It will get through it eventually, and we will look at