BITCOIN: LAST BOUNCE BEFORE 7.2K?!
X FORCE CRYPTO ANALYSIS:
We are currently seeing a correction after a run from 3k to 13k. Although we we are still in a bullish rally from a long term perspective, there is potential for further downwards correction. Let's take a look at the current situation, then see the ultimate fate of Bitcoin:
Analysis
- We have seen a textbook Elliott Impulse Wave (12345) count up to 13k.
- Instead of an Elliott Correction wave (ABC), we have seen a negation of the corrective count
- We are now counting an Elliott Double Combo wave (WXY), in which we are seeing the Y wave play out
- Within the Y wave, we have seen sideways movements for weeks.
- If we look at the shorter time frames (4h), in a bullish case, this could be a broadening bottom pattern, and in a bearish case, this could be a widening ascending wedge.
- As this is appears closer to a bear flag on the daily pattern, considering the fact that we are still below the 200 Moving Average (MA), the short-mid term is still bearish.
- Given that this is more likely to be a bearish pattern, we can count Elliott Triangle Waves (ABCDE), marked in orange.
- We could potentially see wave E play out, reaching up to 8.6k or 8.9k depending on the strength of the breakout, and whether the bullish price movement is supported by sufficient volume and momentum.
Market Sentiment:
We currently have mixed sentiment regarding the market as it is trading sideways. The overall trend for the short-mid term, however, is bullish; but remain bearish for the long term.
What We Believe
Ultimately, we are still looking at 7.2k as our bottom target, which is the 1.618 Fibonacci support level. We see our Y wave to play out down to those levels before seeing a strong bounce or the start of a bullish rally.
Trade Safe.
Please make sure to follow and support us on twitter and telegram
We are currently seeing a correction after a run from 3k to 13k. Although we we are still in a bullish rally from a long term perspective, there is potential for further downwards correction. Let's take a look at the current situation, then see the ultimate fate of Bitcoin:
Analysis
- We have seen a textbook Elliott Impulse Wave (12345) count up to 13k.
- Instead of an Elliott Correction wave (ABC), we have seen a negation of the corrective count
- We are now counting an Elliott Double Combo wave (WXY), in which we are seeing the Y wave play out
- Within the Y wave, we have seen sideways movements for weeks.
- If we look at the shorter time frames (4h), in a bullish case, this could be a broadening bottom pattern, and in a bearish case, this could be a widening ascending wedge.
- As this is appears closer to a bear flag on the daily pattern, considering the fact that we are still below the 200 Moving Average (MA), the short-mid term is still bearish.
- Given that this is more likely to be a bearish pattern, we can count Elliott Triangle Waves (ABCDE), marked in orange.
- We could potentially see wave E play out, reaching up to 8.6k or 8.9k depending on the strength of the breakout, and whether the bullish price movement is supported by sufficient volume and momentum.
Market Sentiment:
We currently have mixed sentiment regarding the market as it is trading sideways. The overall trend for the short-mid term, however, is bullish; but remain bearish for the long term.
What We Believe
Ultimately, we are still looking at 7.2k as our bottom target, which is the 1.618 Fibonacci support level. We see our Y wave to play out down to those levels before seeing a strong bounce or the start of a bullish rally.
Trade Safe.
Please make sure to follow and support us on twitter and telegram
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