Why can’t Bitcoin bears make a new lower low?
The crypto community is inundated with debates over whether Bitcoin is in a bull or a bear market. This theme continues until a new high or low appears.
The current price action is bearish and gives the impression that sellers are dominating the market. The news cycle and mood aren’t helping the cops. But there is a “theory” that no subsidence will be made.
Elliott Wave International analyst Tony Carrion attributes the recent 20 percent decline in the crypto market as part of a Wave C and short-term prediction.
The long-term game will be heading towards a positive Q4 with Tony expecting wave 5 to develop and the price to move higher. If this is not the case, the model can be deactivated.
The recent accurate prediction of wave C led to a deeper analysis of the long-term game. According to Elliott wave theory, a main impulse wave consists of 5 waves, with the odd waves 1, 3, 5 being the main wave. And we’re talking about Bitcoin, so the main trend is almost always up.
At the lower end of the bear market, a new fundamental wave (dynamic wave) and a series of impulse waves begin. Waves 2, 4 are bearish consolidation periods that go against the trend. Tony’s idea was that the rally in early 2019 was wave one, wave two ended on Black Thursday (note this), and wave three ended in April at $ 65,000.
Wave four should be sideways while wave two is strong | TradingView
Why do Bitcoin bears always covet new lows?
It is unclear when wave four ends and wave five begins. However, when you look at some facts about the Elliott Wave rules and guidelines, as well as some key factors related to the current market cycle, things start to fit into the pattern.
The best argument is that the bears always want Bitcoin for a deeper decline towards $ 20,000 and a lower ground scenario, as that happened after the 2019 high through Black Thursday. However, according to the rules of Elliott waves, waves 2 and 4 will alternate in their intensity.
There will be a major correction in these two waves, a sideways wave. Looking at the ups and downs of the last one, a sharp correction is an understatement, especially when compared to the most recent “top”.
So if wave 2 corrects heavily, wave 4 will move sideways.
Each major wave is usually accompanied by five minor waves | Source: TradingView
Also part of the rotation rule are shafts 1, 3, 5, which rotate to a certain extent. According to Elliott wave theory, waves 1, 5 mark the time and intensity, especially wave 3 is an extension.
All of this information suggests that there won’t be a new lower lows and that wave 5 will push the price up about 350% where wave 4 ended.
This is all great news for those hoping that Bitcoin will hit $ 100,000. What’s the only thing to worry about? When it’s all over and the pattern is right, the worst bear market in history will come.
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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.
According to NewsBTC