A quick look at Bitcoin's 4 hourly price chart reveals a complete five-wave impulse followed by a three-wave correction. Taken together, the two patterns form a textbook Elliott Wave cycle, labeled i-ii-iii-iv-v-a-b-c. According to Elliott Wave theory, once the corrective phase ends, the larger trend resumes in the direction of the impulsive sequence.
BTCUSD Is Setting Up for Another 20-35% Drop
“Three-wave” is the keyword here, because it seems that Bitcoin's correction did not end in April, but is still in progress. The initial sharp selloff, which erased 27% of Bitcoin’s market value, is labeled as wave (a). The current rally to $57430 so far must then be wave (b). It follows that another notable decline can be expected in wave (c) before the bulls can really return.
Since wave (c) is supposed to breach the bottom of wave (a), targets below $46900 a coin make sense. If this analysis is correct, Bitcoin investors should brace for another 20-30% drop. In fact, the price seems to be approaching a key supply level and we could see a reversal soon. Rally above $64952 will invalidate this analysis.
Below is my long-term analysis of BTC that I published on the 23rd of February.
"Bitcoin Carries Very High Risks Above $60,000"
What's your view on Bitcoin? Let me know in the comment.
Thanks for reading,
Veejahbee.
BTCUSD Is Setting Up for Another 20-35% Drop
“Three-wave” is the keyword here, because it seems that Bitcoin's correction did not end in April, but is still in progress. The initial sharp selloff, which erased 27% of Bitcoin’s market value, is labeled as wave (a). The current rally to $57430 so far must then be wave (b). It follows that another notable decline can be expected in wave (c) before the bulls can really return.
Since wave (c) is supposed to breach the bottom of wave (a), targets below $46900 a coin make sense. If this analysis is correct, Bitcoin investors should brace for another 20-30% drop. In fact, the price seems to be approaching a key supply level and we could see a reversal soon. Rally above $64952 will invalidate this analysis.
Below is my long-term analysis of BTC that I published on the 23rd of February.
"Bitcoin Carries Very High Risks Above $60,000"
What's your view on Bitcoin? Let me know in the comment.
Thanks for reading,
Veejahbee.
