In our last discussion, we delved into the alternating principle of corrective waves. This time, let's turn our focus to the critical topic of corrective wave Depth, which is particularly important for the current Crypto Assets market.

Currently, Bitcoin ( BTC ) is in an important cycle. From November 2022 to 2025, we can observe a five-wave structure from 15443 to 124545 is about to be completed. At the same time, the trend of Ethereum ( ETH ) is also worth paying attention to. Starting from April 2025, ETH has experienced a weekly level fourth wave adjustment from 1384 to 4794 (currently assessed). At the daily level, starting from June 23, 2025, ETH completed a five-wave rise from 2111 to 4794. These observations are significant for our predictions of future trends.

The wave theory provides us with a unique perspective to assess the Depth of market corrections. As the theory states, corrective waves, especially the correction of the fourth wave, often reach the maximum retracement within the movement area of the previous smaller degree's fourth wave, most of the time nearing its endpoint level. This insight offers valuable guidance for our understanding of market trends.

It is worth noting that when analyzing long-term market trends, using charts adjusted for a fixed dollar value can eliminate the impact of inflation and exchange rate fluctuations on the data, thereby providing a more accurate historical comparison basis. For example, the lowest point of the super cycle wave in 1932 coincides exactly with the fourth wave area of the previous cycle, which spans a period of 18 years.

By analyzing the market in this way, we can better understand the current position of BTC and ETH, and have a clearer expectation of potential future trends. However, we must always remain cautious, as the market is always full of variables. Although the wave theory is powerful, it is not absolutely accurate.