EW Analysis: Wave structure Suggests Limited Downside For BTC
Updated
Hello traders!
After that deeper corrective decline called double zig-zag W-X-Y pattern on Bitcoin , it's time to take a look at potential support levels.
We decided to take a look at Bitcoin dominance ( BTC .D) against the ALT dominance (OTHERS.D), where we clearly see a corrective decline in wave 4 that can find support soon, ideally around previous wave »iv«, 38,2% Fibonacci retracement and 14.00 – 13.50 area. So, seems like BTC Dominance will come back, which can be supportive for Bitcoin , especially if ALTs are looking for the potential support or bottom, but according to dominance, BTC should be still doing it better than ALTs!
We also decided to take a look on BTC Futures chart, because it's more accurate than those from exchanges. As said above, we are tracking a double zig-zag W-X-Y corrective pattern, which can be approaching the end soon, ideally once BTC .D/OTHERS.D chart finds support. From technical perspective, previous wave 4 and 61,8% Fibonacci retracement are actually ideal support zone and if we also consider an open GAP from May, which usually acts as a reversal point once it gets filled, then we should be really aware of a potential bounce around 7000 area, specifically 7400 – 6300!
As always, the count always needs to be confirmed, so we will be watching very closely when/if comes into the support zone . And, if BTCUSD is really going to rebound in strong and impulsive manner later, then we will be looking for longs, but until then we have to patiently wait!
Trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
After that deeper corrective decline called double zig-zag W-X-Y pattern on Bitcoin , it's time to take a look at potential support levels.
We decided to take a look at Bitcoin dominance ( BTC .D) against the ALT dominance (OTHERS.D), where we clearly see a corrective decline in wave 4 that can find support soon, ideally around previous wave »iv«, 38,2% Fibonacci retracement and 14.00 – 13.50 area. So, seems like BTC Dominance will come back, which can be supportive for Bitcoin , especially if ALTs are looking for the potential support or bottom, but according to dominance, BTC should be still doing it better than ALTs!
We also decided to take a look on BTC Futures chart, because it's more accurate than those from exchanges. As said above, we are tracking a double zig-zag W-X-Y corrective pattern, which can be approaching the end soon, ideally once BTC .D/OTHERS.D chart finds support. From technical perspective, previous wave 4 and 61,8% Fibonacci retracement are actually ideal support zone and if we also consider an open GAP from May, which usually acts as a reversal point once it gets filled, then we should be really aware of a potential bounce around 7000 area, specifically 7400 – 6300!
As always, the count always needs to be confirmed, so we will be watching very closely when/if comes into the support zone . And, if BTCUSD is really going to rebound in strong and impulsive manner later, then we will be looking for longs, but until then we have to patiently wait!
Trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Note
BTC FUTURES UPDATE: As expected, after a completed subwave (iv), seems like BTC is coming down into a projected support for wave (v) of "c" of Y now.Note
BTC Futures update: Despite recent rise, we still remain bearish! Mainly because of the rise during the weekend that has left an open GAP which usually gets filled, so we would not be surprised if Crypto market faces limited upside!Note
As expected, BTC drops into new lows for the final wave (v), where we see an important and strong support around 7000 level. Watching, tracking, waiting...Note
This is the support and bounce we were waiting for. #BTCUSD #Bitcoin #Cryptos #cryptocurrencies #bullish #correction #support #elliottwave
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