Cryptocurrencies still look bullish, despite a strong decline at the beginning of 2018. People talked about a bubble, but it's actually called mania cycle or mania phase, which has already happened many times in many different markets. The book says: "Every mania is followed by a decline that ends below the starting point of the advance." So, it's nothing new and usually markets tend to rise.

We found an interesting cryptocurrency with clear wave structure, called Zencash. Let's take a look at the daily chart.

After an impulsive five-wave cycle from 3 to 72 level into wave A/1 in 2017, we see, at the beginning of 2018, a three-wave (A)-(B)-(C) correction down to 14 level into wave B/2, right into a previous wave (4) support, which is ideal support in EW theory. Zencash lost almost 80% and its price can now recover with the unfolding of a new five-wave cycle with waves (1) and (2) already perfectly finished and currently headed within wave (3)-(4)-(5) towards new all-time highs into wave C/3.

In Elliott wave theory, a five-wave move means impulse and a three-wave move means correction, so there's always a minimum three-wave movement and as you can see, we are expecting a minimum third wave C to the upside towards 85-95 levels, but there's a chance of wave 3, which is the strongest and the sharpest wave and this wave can extend much much higher above 100 level.

ZENUSD, daily