Welcome for another grand update on Bitcoin part of THE BEAR MARKET CONTINUES PART VI
Final Target = 2496.03 USD
Potential bottom = 1647.96 USD
Hidden GAP 1319.47 - 1814.76 USD
Right Fibonacci Extension wave (c)
Left Fibonacci Retracement wave (a)
Why do I think we have completed sub wave c? There are many reasons. Fib-Time is 1.236.
At the top we have the reversal pattern Evening Star on the daily chart.
The correction is in the channel.
Why invalidation level 16208.65? (b) wave on the linear chart must not return more than 80% of the wave (a), otherwise it is no longer a zigzag correction. 16208.65 is 0.786 fibo wave (a).
Why wave (c) in June 2021 at 2500-1650?
Fib-extension 1.01 comes out on 2496.03. 1.236 comes out on 1647.96. At the same time, the lower trend line of the uptrend channel and the lower trend line of the downtrend channel of the correction pass through there. Fib-Time hits 0.618.
On RSI you see a red horizontal line at 53.34. She was a support throughout the bull run in 2016-2017. Whenever the price fell below WMA 21, the RSI also fell below the red line.
Hidden GAP is a zone that the price just flew through and never tested.
Final Target = 2496.03 USD
Potential bottom = 1647.96 USD
Hidden GAP 1319.47 - 1814.76 USD
Right Fibonacci Extension wave (c)
Left Fibonacci Retracement wave (a)
Why do I think we have completed sub wave c? There are many reasons. Fib-Time is 1.236.
Why invalidation level 16208.65? (b) wave on the linear chart must not return more than 80% of the wave (a), otherwise it is no longer a zigzag correction. 16208.65 is 0.786 fibo wave (a).
Why wave (c) in June 2021 at 2500-1650?
Fib-extension 1.01 comes out on 2496.03. 1.236 comes out on 1647.96. At the same time, the lower trend line of the uptrend channel and the lower trend line of the downtrend channel of the correction pass through there. Fib-Time hits 0.618.
Hidden GAP is a zone that the price just flew through and never tested.
Comment:
This is the key level for Bitstamp. If the BTC exceeds 80% of wave (a), it is not a zigzag correction and the later correction may be flat.
Comment:
In the literature on elliott waves, it is stated that in terms of zigzag correction, wave (b) must not exceed 81% of wave (a). That's why I adjusted the invalidation level to 16522. So the analysis is still valid.
Comment:
BTC overcame 81% of wave (a), this is not a ZigZag correction.
If we're still in the bear market, it could be flat.
If we're still in the bear market, it could be flat.
Comment:
The NVT indicator is in the extreme zone, notice that in the 2016-2017 bull market, this indicator did not exceed 100. Today we are at 187. Whenever it was in the red band above 150, a significant correction came.