Bitcoin | Elliott Wave Bearish View | Jeremy Wagner

Hi, Elliott Wave provides a structure to frame the market from. The price reaction today in Bitcoin occurred in a price zone of wave relationships for a 'D' wave of a large Elliott Wave triangle.

If this is the correct scenario, then Bitcoin likely softens to 5500-7000. Below 8,600 may be an early warning signal of deeper losses coming. Below 7,454 signals a huge corrective wave since 2018 with 5500-7000 possibly being a buy zone. We can better assess that probability if/when price arrives by analyzing the structure of the correction.

(Please accept my apologies for the busy chart. Bitcoin has many many EW options still on the table so the extra scribbles are to refresh my frame of mind as we see the structure unfold. Frankly, below 7,454 does eliminate a couple of the options which would allow us to focus on a smaller number of options.)