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Assessing the Validity of Our Previous A-B-C Correction Forecast

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In our ongoing quest to unravel the enigma of Bitcoin's price movements, we return to the sober analysis presented in our previous article (which you can find here). There, we explored the possibility of an A-B-C correction, which could potentially lead to a pullback to the $29,400 level before another downward leg. Now, we reevaluate the situation to see if our earlier prognosis still holds water, as we examine the recent price developments.

A Closer Look at the A-B-C Correction: Despite a slightly unexpected push to the $30,050 mark, which surpassed our anticipated $29,400 level, the overall setup remains largely intact. This minor deviation doesn't invalidate our previous analysis; as such, we still anticipate another leg down to the targets highlighted in our earlier post.

Current Market Position and Trading Strategy

As of now, Bitcoin is trading at $28,900. For those seeking to enter a short trade, this level offers a promising opportunity, with a stop-loss set above the recent swing high of $30,050.

For those who prefer to wait for an even more favorable entry point, consider the untapped 4-hour level at $29,818, highlighted in the image below. Another robust entry point could be the $29,632 level, which is also likely to serve as a resistance level.

These two levels provide relatively tight stop-losses and favorable risk-reward ratios. However, it's essential to keep in mind the upcoming Advance GDP q/q release, which has the potential to shake up the market. If you haven't entered a trade by the time the release approaches, exercise caution and wait to see how the market reacts. Should you find yourself in a trade before the release, ensure you have a stop-loss in place to protect yourself in case of unexpected volatility.