Looking at BTC from the very beginning we can chart a long-term EW at play. From inception to Bitcoin's first rise to $1200 being wave 1. After that we have the Mt. Gox hack and correction that brought Bitcoin back down to $250. From there Began a rise into Wave 3 reaching it's pinnacle at the $20,000 mark that we saw in recent history. This has since pushed BTC into a "Bear market," but is it really just a Wave 4 correction? Additionally, Bitcoin has been following an ascending channel that we can see in the chart. Looking at the potential Wave 4 correction and following the support line of the ascending channel we can reasonably surmise that the corrective wave is not yet over, and still has room for capitulation. This presents an entry target of $4260. From this point, entering a Wave 5 presents a long-term target for Bitcoin at an astounding $100,000.
This is not to say that there will not, or are not other EW's and corrections throughout the trend where traders will have the opportunity to make profits both longing and shorting BTC, but from a broad perspective and that of investors the Risk/Reward is in favor of the bulls long-term with a lofty target to reach. Some may say that BTC reaching $100k is not in the cards, but a year ago no one believed that BTC would race to $20k either.
That said, I believe that Bitcoin still has room to fall before an entry should be taken.
This is not to say that there will not, or are not other EW's and corrections throughout the trend where traders will have the opportunity to make profits both longing and shorting BTC, but from a broad perspective and that of investors the Risk/Reward is in favor of the bulls long-term with a lofty target to reach. Some may say that BTC reaching $100k is not in the cards, but a year ago no one believed that BTC would race to $20k either.
That said, I believe that Bitcoin still has room to fall before an entry should be taken.
Comment:
BTC bounced an has now started to create an EW down. Looking quite likely that the $4260 target will be hit.