Analyzing $DEGEN is proving to be quite challenging. This 4th wave correction initially transformed from a basic a, b, c correction to a complex ‘WXY’ correction. Now, it appears to have morphed into an even more complex ‘WXYXZ’ correction. This correction is a combination of multiple corrections. I have done my best to analyze and provide you with some support levels and invalidation points.
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Currently, there are two scenarios. The first is bullish, and the second is short-term bearish but bullish in the long term. Both scenarios are highly likely right now, depending on how BTC performs in the coming days, we can see which scenario turns out to be playing.
Support Levels for wave 4:
Support level for wave 4 is common in both the scenarios, which are at $0.01512 and 0.009684. Price should hold the 0.0096 level to maintain the higher degree bullish potential of the chart and maintain the structure.
First Scenario:
The first scenario is pretty straightforward. The price is in the final stages of the correction and will hold the support level (indicated in white) and will soon start its upward movement. If it breaks the white support level at 0.01674, this means the bullish setup will fail, and we will enter our short-term bearish alternate scenario.
Alternate Scneario:
As per our alternate scenrio, price is coming down in wxyxz in wave 4. Waves w, x, y, x are already complete and we are in the final wave z, which is most probably unfolding in an expanding ending diagonal in circled wave 1, 2, 3, 4, 5 (shown by red dotted trend lines).
In wave z , circled sub-waves 1, 2, 3 and 4 are already complete and we are in the final circled wave 5 which should unfold in a 3 wave structure a, b, c.
Next support levels for circled wave 5 of higher degree wave z of higher degree wave 4 is at $0.01498, $0.01155, $0.009684
Implementing VPVR:
When we use the volume profile indicator, we can observe that the lowest trading volume is exactly in between our support levels in yellow. If price reaches there, it should be considered as an opportunity to scale in. This shows that alternate scenario has high probability of playing out.
I have shared all the posiibilites, support levels and invalidation points. Now it is your decision on how to use this information in your favour.
My Suggestion: Rather than getting stuck in the analysis paralysis, you should focus on the support levels and invalidation points. You can start scaling in mildly in the primary scenario, if it gets invalidated you can invest intensly in the yellow support zones.
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$DEGEN Chart Analysis: Revisiting HTF
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Overview:
Analyzing $DEGEN is proving to be quite challenging. This 4th wave correction initially transformed from a basic a, b, c correction to a complex ‘WXY’ correction. Now, it appears to have morphed into an even more complex ‘WXYXZ’ correction. This correction is a combination of multiple corrections. I have done my best to analyze and provide you with some support levels and invalidation points.
Currently, there are two scenarios. The first is bullish, and the second is short-term bearish but bullish in the long term. Both scenarios are highly likely right now, depending on how BTC performs in the coming days, we can see which scenario turns out to be playing.
Support Levels for wave 4:
Support level for wave 4 is common in both the scenarios, which are at $0.01512 and 0.009684. Price should hold the 0.0096 level to maintain the higher degree bullish potential of the chart and maintain the structure.
First Scenario:
The first scenario is pretty straightforward. The price is in the final stages of the correction and will hold the support level (indicated in white) and will soon start its upward movement. If it breaks the white support level at 0.01674, this means the bullish setup will fail, and we will enter our short-term bearish alternate scenario.
Alternate Scneario:
As per our alternate scenrio, price is coming down in wxyxz in wave 4. Waves w, x, y, x are already complete and we are in the final wave z, which is most probably unfolding in an expanding ending diagonal in circled wave 1, 2, 3, 4, 5 (shown by red dotted trend lines).
In wave z , circled sub-waves 1, 2, 3 and 4 are already complete and we are in the final circled wave 5 which should unfold in a 3 wave structure a, b, c.
Next support levels for circled wave 5 of higher degree wave z of higher degree wave 4 is at $0.01498, $0.01155, $0.009684
Implementing VPVR:
When we use the volume profile indicator, we can observe that the lowest trading volume is exactly in between our support levels in yellow. If price reaches there, it should be considered as an opportunity to scale in. This shows that alternate scenario has high probability of playing out.
I have shared all the posiibilites, support levels and invalidation points. Now it is your decision on how to use this information in your favour.
My Suggestion: Rather than getting stuck in the analysis paralysis, you should focus on the support levels and invalidation points. You can start scaling in mildly in the primary scenario, if it gets invalidated you can invest intensly in the yellow support zones.
Thanks for reading,
-Ivaavi