Bitcoin Zigzag: The Unexpected Twist After the Sell-Off!

Upon closely re-evaluating Bitcoin, especially after witnessing this significant sell-off, we must increasingly consider that we're dealing with a Zigzag pattern rather than a Flat structure. As evident in the detailed analysis, we've reached the 78.6% level for Wave B at $71,000, followed by what appears to be an accumulation phase during which Waves ((i)) and ((ii)) were formed, moving towards Wave ((iii)). We're either at Wave ((iii)) at the 161.8% extension level or, as initially anticipated, between the 227.2% and 261.8% levels. Although further drops are possible, we believe this support zone will be crucial. Subsequently, we expect a rebound up to a maximum level close to Wave ((i)), considering $68,000 as a strong resistance zone, while still aiming to find our entry in the range of $57,000 to $54,000. Comparing this with what we anticipate for Wave (4) based on the Fibonacci retracement, we would expect the 38.2% level at $55,000. Therefore, our analysis precisely aligns with the midpoint between the 138% to 161.8% expectation for Wave C.

Comment:

A closer examination of Bitcoin reveals the following: we have observed what we anticipated, which is a decline to at least the 161.8 level up to the 227.2% extension level. We have now reversed right in the middle of these two levels and believe we have identified Wave ((iii)). As a result, we should now be forming Wave ((iv)), which should lie between the 38.2 and 50% levels. The 50 percent level also falls on a resistance zone, which we regard as significant, just below the invalidation level at Wave ((i)) at $68,420. Therefore, we must flip this to continue seeing a bullish trend in Bitcoin. If we do not see this but only a rise to a maximum of $68,420, there could be another strong sell-off to reach our long-term entry zone.

Comment:

The short term bearish scenario for Bitcoin has now been invalidated, and it appears we might be on our way to surpassing our Wave B, which is around $72,000. At this moment, it looks like we might need to remain patient because it's possible that Wave (4) has already concluded. This doesn't change much yet; we're still keeping the scenario open that if we exceed $78,770, we'll consider Wave (4) to be definitively completed at the level of around $61,000, which corresponds to Wave A. Unless that happens, there's still a chance for other outcomes, but it's becoming increasingly likely that Wave (4) is already complete. Our entry is now up 77.5% again