ELLIOT WAVE: Bitcoin Might Decline To $5500 Confuence AreaBitcoin is clearly in the corrective cycle but might not ready for the significant rally yet. The correction which seems to be unfolding as a triple Zigzag is still in the making.
We've seen an a-b-c zigzag in wave (w), and another a-b-c zigzag in (y), but in wave (z) "3rd zigzag" seems to have completed wave "a" while wave "b" is in the making.
Wave "b" of (z), which seems to be unfolding as an expanded flat pattern, will most-likely terminated at 1.618 area "blue zone," that lined up with channel resistance and 200 EMA.
This confluence level will most likely cause a reversal, which will lead to a decline in wave "c" of (z) to complete the 3rd zigzag pattern.
Wave "c" of (z) should find support at $5500 circa which comprises of 78.6 Fibonacci retracement + channel support + level where wave (z) equals (y).
Bottom Line
The price will most likely advance to around $8300 - $8500 area to complete wave "b" of (z), then we might see a decline to $5500 in wave c of (z) to complete the corrective cycle.
The important thing is that once the corrective cycle is completed, we should see a major rally in wave C that will exceed wave A high at $13800 zone.
Thanks for reading!
Veejahbee.
