Hello dear friends, I hope you are doing well.
It took a long time to identify the structure of this prolonged sideways movement. I watched many videos and referred to my notes, and this has been very helpful.
The current wave structure in which Bitcoin is moving sideways is a flat pattern. This structure typically occurs in Wave 4 of Elliott Waves.
What is a Flat?
A flat is a corrective wave pattern in Elliott Wave theory that consists of three phases labeled as ABC:
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- Wave A consists of 3 waves.
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- Wave B consists of 3 waves.
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- Wave C consists of 5 waves.
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In general, the movement pattern of this structure is 3-3-5.
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After the pattern is complete, a breakout to the upside usually occurs (since Bitcoin was in an uptrend before this).
Sometimes this pattern can combine in a double or triple formation, which we will review below:
Double Flats:
Double flats can be divided into three categories:
1. Flat + Flat
2. Flat + Zigzag
3. Flat + Triangle
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To connect them, an X wave is needed, which also has a 3-wave structure.
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Conclusion:
If the top of this flat is broken, Wave 5 movement will begin. If the top is not broken and the correction continues, it means this upward movement was Wave X, and we should expect a larger flat, zigzag, or triangle pattern.
Once the structure is identified, the chart will be updated.
It took a long time to identify the structure of this prolonged sideways movement. I watched many videos and referred to my notes, and this has been very helpful.
The current wave structure in which Bitcoin is moving sideways is a flat pattern. This structure typically occurs in Wave 4 of Elliott Waves.
What is a Flat?
A flat is a corrective wave pattern in Elliott Wave theory that consists of three phases labeled as ABC:
------------
- Wave A consists of 3 waves.
- Wave B consists of 3 waves.
- Wave C consists of 5 waves.
In general, the movement pattern of this structure is 3-3-5.
After the pattern is complete, a breakout to the upside usually occurs (since Bitcoin was in an uptrend before this).
Sometimes this pattern can combine in a double or triple formation, which we will review below:
Double Flats:
Double flats can be divided into three categories:
1. Flat + Flat
2. Flat + Zigzag
3. Flat + Triangle
--------------
To connect them, an X wave is needed, which also has a 3-wave structure.
Conclusion:
If the top of this flat is broken, Wave 5 movement will begin. If the top is not broken and the correction continues, it means this upward movement was Wave X, and we should expect a larger flat, zigzag, or triangle pattern.
Once the structure is identified, the chart will be updated.
Trade active:
In my opinion, Bitcoin will move towards the $73,000 resistance level with this same pattern. After breaking $73,000, it will reach the range of $86,000.
Be cautious with your positions.
Be cautious with your positions.
