In this study, I show the Rising Wedge that has broken down, driving the recent drop, with price finding the support line of the Bullish Megaphone structure for a 3rd time.
The current challenges in this chart for bulls to overcome are:
The break of the Wedge projects a movement below the support of the Megaphone;
A Bear Flag is formed
The downward Elliott Wave count is 4, with a 5th leg to go;
A break below $21,351 means we are going lower;
Once 21.3k breaks, the next support levels are 20.4k and 18.4k.
On the other hand, if price can find support above 21.4k and rally, then we could be in for an explosion toward 40K. This is because the Wave 5 (marked in Green) would suddenly transform into a minor Wave 1 and indicate a commencement of a wave 3 leg higher.
The good news is, whether it’s a rally from 21.5k, 20.4k, or 18.4k, it certainly seems like the trend is up.
What do you think? Are we going towards 40k in quick time, falling back towards 18k before rising higher, about to break down completely and sink back into a continuation of the bear market?
@Christash nice work. You have the double-top as part of the impulse, whereas I have it as part of the correction. Elliott Waves! They’re so subjective until all potentials are resolved. Either way, the breakdown depth from this current consolidation will be instructive.
Christash
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@Crypto-Swing, So far it seems that BTC is following the chart pretty closely as shown above. Let's see how it evolves further...
Crypto-Swing
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@Christash the 1W 300MA is looming large. Major support. I suspect a spike below to reach the pivot low of wave 2.