Outline the number of potential waves for Bitcoin

Jul 19, 2021

Bitcoin (BTC) has been falling since April 14th and this could be the fourth long-term wave.

BTC trades within a short term descending parallel channel from which a breakout is expected.

Long-term wave counting

BTC has fallen since hitting an all-time high of $ 64,895 on April 14th.

If so, it means that price is currently in the fourth wave of the same bullish impulse.

The two most likely levels to complete this wave are $ 27,000 and $ 16,800. These targets are the support levels for the FIb retracement of 0.618 and 0.786.

The number of sub-waves is shown in white, indicating that BTC is currently in wave B of the ABC correction structure.

A decline below the June 2019 high of $ 14,247 (red line) invalidates that particular wavenumber.

Song bitcoin

BTC / USDT weekly chart | Source: TradingView

Is the drop ready?

With regard to the number of medium-term waves, there are essentially two options.

The first possibility indicates that the first part of the drop has been completed. This is illustrated by a completed bearish impulse (orange) with the low of June 22nd.

The trend line connecting the top of wave 2-4 has been broken. Hence, it can be doubted that BTC is still in wave 5.

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BTC / USDT daily chart | Source: TradingView

The second potential outlook shows that BTC is still in wave 4.

If so, it is likely that there will be another decline after wave 4 is over. However, the short-term performance of both is likely to be the same and prices will soon recover.

BTC / USDT daily chart | Source: TradingView

Short term wavenumber

Trader @AltstreetBet has outlined a BTC chart showing that price is currently in wave B of the ABC correction structure.

Song bitcoin

Source: Twitter

Similar to the daily time frame, there are essentially two options for short-term wave counting. The 1st option is the same as stated in the tweet.

Since the first part of the upward move (wave A) is a three-wave structure, it makes sense that the move was a flat correction. Therefore, wave B must move to at least 0.85 fib retracement support and should fall slightly below the initial lows.

When this happens, BTC can drop to at least $ 29,950 before jumping back up.

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