BITCOIN - Price prediction according to Elliott Wave Theory

BINANCE:BTCUSDT   Bitcoin / TetherUS
Hope you all are having a green PNL from this market. We are seeing a massive bull move to the upside after the correction happened in September. While seeing the recent impulse, correction and the next impulse, the price looks like it's moving according to Elliot wave theory.

Basic Principle of Elliott Wave Theory.
Simply put, movement in the direction of the trend is unfolding in 5 waves (called motive wave or impulse) while any correction against the trend is in three waves (called corrective wave). The movement in the direction of the trend is labelled as 1, 2, 3, 4, and 5. There is also a three wave correction wave, as of now it is not drawn in the chart. These patterns can be seen in long term as well as short-term charts. Ideally, smaller patterns can be identified within bigger patterns.

Currently, looking into the daily chart , we can see a motive wave to the upside first, which was from 29k to 52k , this is the first wave, and we can call it as wave 1. And it was followed by a correction wave, which was 50% of the first wave. According to Elliot Wave theory, wave 2 is typically 50%, 61.8%, 76.4%, or 85.4% of wave 1. So this can be considered as a successful correction.

And after the correction wave 2 we are now seeing the third impulse.
If the price is playing out according to the theory, the third impulse wave is supposed to be 161.8% of wave 1, which comes around at 77500.

The third impulse is usually followed by a correction wave, we can call it as wave 4, and wave 4 is typically 14.6%, 23.6%, or 38.2% of wave 3. This can cause a pull back of price to around 62500.

After the fourth correction wave, there will be one more impulse to the upside, which is the final one. And this wave 5 is typically inverse 1.236 – 1.618% of wave 4, equal to wave 1 or 61.8% of wave 1+3. Which is around 85000.
And after the fifth impulse to the upside, price will form a 3 wave correction.

The first impulse and correction satisfies the theory, this does not mean that we will be seeing price following exactly in this path. All these are just probabilities. Market usually follows these wave patterns and I just tried figuring out what will happen if it is going to follow the same this time around. As you all know technical analysis won't be always completely true, and the price is never 100% predictable, if it was that simple, most of the traders wouldn't be losing money on financial markets. So take your own time to analyze and plan your trades before entering.

Thank you, and have a great trading day ahead.