Using Elliott Waves to Determine Next Move for Bitcoin

Bitcoin (BTC) rebounded significantly on September 22nd, likely marking the end of a nearly two-week downtrend.

Thereafter, the continued surge has largely weakened the number of potential bearish waves. Hence, it is more likely that BTC has bottomed out.

Two possibilities

Trader @TheTradinghubb has outlined two potential values ​​for BTC, one as bullish and the other as bearish. In this article, we’re going to look at both of them and determine which is the most likely.

The source: Twitter

BTC bullish wave number

The only thing that seems certain for the BTC move is that the decline from the all-time high of April 14th (highlighted) is a bearish impulse with five waves. However, I’m not sure if it’s part of wave C (white) or the beginning of a new bearish impulse.

The number of rising waves shows that it is wave C. Therefore a new impulse (white) started on June 22nd. The continuous decline since September 7th is part of wave 2. Then the increase on September 22nd should end the correction. The fact that the rally happened at exactly the 0.5 fib retracement level further reinforces this possibility.

BTC / USDT daily chart | Source: TradingView

The number of partial waves is shown in orange. The drop mentioned above is similar to the textbook ABC correction structure where the A: C wave has a 1: 1 ratio.

In addition, the movement is contained in a descending parallel channel that normally contains the correction structure.

BTC / USDT 12-hour chart | Source: TradingView

The rise above the first wave low at $ 42,900 (red line) has largely invalidated the potential downward move. Unless it’s a huge 1-2 / 1-2 formation, however, this looks extremely unlikely.

BTC / USDT 6-hour chart | Source: TradingView

The number of BTC is falling

The number of declines shows that the entire uptrend since June 22nd is part of a corrective structure (orange). In this case, another downward move is expected, bringing the price below the June 22nd low (white).

The problem with this wave number is the length of wave C (orange), which is almost 3.61 times as long as wave A.

BTC / USDT daily chart | Source: TradingView

BTC / USDT daily chart | Source: TradingView

But even if the number turns out to be true, BTC could soar to $ 50,000 before falling.

BTC / USDT 6-hour chart | Source: TradingView

You can see the Bitcoin price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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