The chart above suggests that BTC is ready to retrace to form wave 2 after which we may be expecting a massive fall to the downside On Bitcoin charts. On the four hour time frame as shown on the chart. There is a preceding impulse wave. That ended around 34,000. This is followed by an ABC correction. Which obviously failed to break the high. Of the wave one, which would count as our impulse at 45863 price region where our invalidation level for this setup is placed.
According to elliottwave. Market appears in cycle. Of. Impulse and corrections, so therefore, after every impulse there must be a correction that follows. This is the basis of the Elliot wave theory and other cycle related trading strategy. Haven said that. we saw a decline in price from 45,000 region down to the low of 37,000 region. Which on the lower time frame, if we zoom in to make a proper count of the wave structure, we are going to see a 5 sub minute wave that suggests that the current push up is a retracement.
All in correction cycle. And will always ideally be followed by an impulse to the proceeding trend direction. So therefore, I'm expecting a push up to the region of 42,000 and it might reach there or not before we see a massive downward move. In form of a wave 3 to as low as 27000.