Market
Using Elliott Waves to Locate the Next Step for Bitcoin
In this article, Bitcoin Magazine looks at the number of potential waves for Bitcoin (BTC) after the sharp decline in December.
Long-term wave counting
The number of major waves shows that BTC is on the fifth wave (white) of a bullish five-wave pulse. The bullish impulse is a five-wave move consisting of three upward and two downward movements that is considered a correction.
This was the last upward move before a significant correction. The entire uptrend started in December 2018 when the BTC price was at $ 3,122.
The number of partial waves is shown in yellow and shows that BTC is still in the second partial wave (yellow). Therefore, if the wavenumber is correct, BTC still has a lot of room to rise.
The only problem with this number of waves is that the trendline connecting waves 2 and 4 is almost broken (red circle). According to Elliott wave theory, the trendline should stay in place as long as the upward movement is intact.
Hence, BTC needs to regain this trendline and trade above it to validate the wave structure.
BTC / USDT weekly chart | Source: TradingView
The number of alternate waves is more bearish, showing that BTC is still in the fourth wave of an upward pulse (white). If so, it will continue to fall to $ 30,000 before finally another upward move towards a new all-time high that completes the bullish momentum.
The only problem with this number is the huge difference between partial waves two and four (highlighted). Although there should be an alternation between them, the fact that the fourth wave is nearly seven times longer than the second is extremely unusual.
BTC / USDT weekly chart | Source: TradingView
Short term wavenumber
Trader @TheTradingHubb sketched a BTC chart showing the price is correcting toward $ 42,000.
The source: Twitter
Since the tweet, BTC has hit its target and recovered. However, given the length of the previous climb, it is unlikely that the entire correction structure is complete. Instead, this could just be the first part of a correction before another drop (black) occurs.
For the bullish wave count to be valid, BTC must hold above the $ 37,100 area. This is the 0.786 fib retracement support and the horizontal support.
A decline below this would make the above decline more likely.
BTC / USDT daily chart | Source: TradingView
You can see the Bitcoin price here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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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Market
Using Elliott Waves to Locate the Next Step for Bitcoin
In this article, Bitcoin Magazine looks at the number of potential waves for Bitcoin (BTC) after the sharp decline in December.
Long-term wave counting
The number of major waves shows that BTC is on the fifth wave (white) of a bullish five-wave pulse. The bullish impulse is a five-wave move consisting of three upward and two downward movements that is considered a correction.
This was the last upward move before a significant correction. The entire uptrend started in December 2018 when the BTC price was at $ 3,122.
The number of partial waves is shown in yellow and shows that BTC is still in the second partial wave (yellow). Therefore, if the wavenumber is correct, BTC still has a lot of room to rise.
The only problem with this number of waves is that the trendline connecting waves 2 and 4 is almost broken (red circle). According to Elliott wave theory, the trendline should stay in place as long as the upward movement is intact.
Hence, BTC needs to regain this trendline and trade above it to validate the wave structure.
BTC / USDT weekly chart | Source: TradingView
The number of alternate waves is more bearish, showing that BTC is still in the fourth wave of an upward pulse (white). If so, it will continue to fall to $ 30,000 before finally another upward move towards a new all-time high that completes the bullish momentum.
The only problem with this number is the huge difference between partial waves two and four (highlighted). Although there should be an alternation between them, the fact that the fourth wave is nearly seven times longer than the second is extremely unusual.
BTC / USDT weekly chart | Source: TradingView
Short term wavenumber
Trader @TheTradingHubb sketched a BTC chart showing the price is correcting toward $ 42,000.
The source: Twitter
Since the tweet, BTC has hit its target and recovered. However, given the length of the previous climb, it is unlikely that the entire correction structure is complete. Instead, this could just be the first part of a correction before another drop (black) occurs.
For the bullish wave count to be valid, BTC must hold above the $ 37,100 area. This is the 0.786 fib retracement support and the horizontal support.
A decline below this would make the above decline more likely.
BTC / USDT daily chart | Source: TradingView
You can see the Bitcoin price here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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.
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
