As the price of Bitcoin broke out from the ascending channel on the downside we are now likely seeing the start of the last impulsive move to the downside which is the Z wave from the Minor WXYXZ (green) correction that has started from 24th of December when the price of Bitcoin was around $4367. The end of wave Z would be the end of the Intermediate X wave (orange) which is why a reversal is expected as the Y wave should start developing to the upside breaking out from the current descending triangle (interrupter purple lines).
The fractals are also implying that there is one more low since the Minor WXYXZ correction was formed with three consecutive fractals (F1,F2,F3) and the current structure also resembles the prior ones - having an impulsive move (azure area) and an ascending channel afterward (purple area).
The price target for the Intermediate Y wave would be at least to the bold black line at around $3920 which is the most significant resistance point to the upside and was the downtrend baseline support since the start of the bear market. Considering that the baseline support was broken on 21th of November last year this current correction is retesting it for resistance before it can continue further to the downside, potentially to around $2913 area where the next significant horizontal support is. The price could go past the resistance point but only as a quick spike that could activate the selling needed to push the price lower.
The fractals are also implying that there is one more low since the Minor WXYXZ correction was formed with three consecutive fractals (F1,F2,F3) and the current structure also resembles the prior ones - having an impulsive move (azure area) and an ascending channel afterward (purple area).
The price target for the Intermediate Y wave would be at least to the bold black line at around $3920 which is the most significant resistance point to the upside and was the downtrend baseline support since the start of the bear market. Considering that the baseline support was broken on 21th of November last year this current correction is retesting it for resistance before it can continue further to the downside, potentially to around $2913 area where the next significant horizontal support is. The price could go past the resistance point but only as a quick spike that could activate the selling needed to push the price lower.