Seeing this chart makes me confident we’re seeing Elliott wave alternation rule playing out. If one correction is flat, the other is a zigzag and the other way around. Also impulses after a flat corrections are often (but not a necessity) more agressive. In this case it was. Don’t expect a degree of same impulse in the 5th wave.

1. To be noted sideways movements happen in a form of flat corrections , triangles etc. and last longer than zigzag sharp corrections. In our case, second wave is a clear running flat correction and lasted longer than a sharp .

2. The other thing is that sharp corrections are deeper than flats. So even if we take this case from COINEX and all the wicks, the flat is still a bit shallower to sharp one.

Hopefully this panic is the bottom. If it is, the most rational thing would be to chop and slowly grind up. We also tested previously untested support. All Elliott wave rules are spot on. We could go lower, but not much more.

Also watch out for the $4,4 price are. If we smash it, it’s game on.