Bitcoin Forecast Newsletter 5th week of March — Weekly Preferred Count

• Explanation

What is Flat?

Elliott named a specific pattern Flat, that has a tendency to continue as a flat formation. Flat pattern normally continues as N formation. It is a corrective wave, but side-way correction. Wave A retraces the prior wave, Wave B normally retraces Wave A 100% and Wave C retraces its prior wave, Wave B. As mentioned, Flat is composed of three different minor waves. Wave A and B must be corrective waves but Wave C must be a motive wave. Therefore, Flat is a corrective pattern with 3–3–5 wave formation.

• Comment

The bullish wave that made a record high in Bitcoin history and has reverted the short-term trend after a relatively big bearish candle on the first week of March is observed as Wave A of Flat. The corrective wave after Wave A has finished retracing 80% of Wave A. The Wave formation of this corrective wave which seems to be Wave B is observed as Double Three finished with Contracting Triangle. Then, the following wave retraced the entire triangle. Thus, it concluded that the current bullish wave is Wave C of Flat ongoing.

• Weekly Trading Strategy

Maintaining the stance of Long, it would be wise to diminish the risk by opening hedging short or closing long position after breaking the previous high.