Elliott Wave Analysis: BITCOIN Can Be Unfolding Five Waves Up
Hello Crypto lovers!
It's time for update, right?
BTCUSD
turned up in an impulsive manner, where it can be unfolding five waves up away from lows, which would confirm a bullish reversal.
At the end of June BTC started to rise pretty sharply, so it's an idea that bottom can be place. As you can see on the chart, BTC already broke above trendline, but the most important is 261,8% Fibonacci extension of wave (1), which usually suggest a wave (3) instead of (C), so we asssume that BTC can be currently trading in a temporary correction of wave (4) that can be either a projected flat correction or it will just stay sideways in a triangle correction. In both cases we can expect more upside back above 8500 level. Based on time projection of wave (2) with 8 daily bars, we may consider something similar for wave (4), so sooner or later BTC may find a support.
However, according to bearish ALT coins, we think that BTC can see a deeper correction, which may test that red trendline as a support, right around 38,2% Fibonacci retracement of wave (3). One more thing is that wave (4) usually retrace back to a previous wave 4, so if we put together all these evidences, then be prepare for another decline into wave C of (4), where ideal support area would be between 7600-7200 levels.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
It's time for update, right?
BTCUSD
turned up in an impulsive manner, where it can be unfolding five waves up away from lows, which would confirm a bullish reversal. At the end of June BTC started to rise pretty sharply, so it's an idea that bottom can be place. As you can see on the chart, BTC already broke above trendline, but the most important is 261,8% Fibonacci extension of wave (1), which usually suggest a wave (3) instead of (C), so we asssume that BTC can be currently trading in a temporary correction of wave (4) that can be either a projected flat correction or it will just stay sideways in a triangle correction. In both cases we can expect more upside back above 8500 level. Based on time projection of wave (2) with 8 daily bars, we may consider something similar for wave (4), so sooner or later BTC may find a support.
However, according to bearish ALT coins, we think that BTC can see a deeper correction, which may test that red trendline as a support, right around 38,2% Fibonacci retracement of wave (3). One more thing is that wave (4) usually retrace back to a previous wave 4, so if we put together all these evidences, then be prepare for another decline into wave C of (4), where ideal support area would be between 7600-7200 levels.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Comment:
BTCUSD just hit 7200. Watch out for a bounce here around 7200 - 7000! Bullish only if goes back above 7800 area!
Comment:
Bitcoin's bullish count was invalidated since we have seen a sharp decline and broken 6800 support level. So, we are tracking an ending diagonal now into wave 5 of (C), which should be completed within three waves a-b-c towards 5000-4000 area.