BITCOIN : Elliot Wave Cycle
Welcome to this comprehensive analysis of Bitcoin performed on a weekly time-frame which is executed using Elliott Wave Principle as it provides a context for the fractal nature BTC's price behavior in terms of waves.
Onto the analysis :-
As we can identify, the price precedes to take forms of Five Waves sequence labelled with numbers 1 through 5 (motive waves) which propels the market in the direction of the main trend.
After the Five Wave sequence completes, the Corrective Waves labelled with alphabets A, B & C (corrective waves) begins which partially retraces the progress made by the motive waves.
Moreover, under the compound construction of the Five waves structure there are sub-waves of lower degree. For instance, Wave 1 (in yellow box) consists of sub-waves Wave (1) through Wave (5) (in white) and the corrective waves (A), (B) & (C) which ensures the completion of one complete cycle consisting 8-waves. Hence, giving us the Wave 1 and same goes for the rest of the Waves.
The main focus of this model is to provide an outlook for the upcoming bull market and the ATH that comes along with it to which there are two possibilities of where the Wave 5 will peak, all illustrated on this chart :-
Possibility 1) We get the new ATH in Q2 of 2022, price above 135k.
Possibility 2) We get the new ATH in Q4 of 2023, price above 210k.
There are few concurring as well as contradictory factors that support both the possibilities to be true. Furthermore, the chart suggests that the time cycle of each impulse wave (Wave 1, 3 & 5) has kept on increasing as BTC matures to which the volatility is inversely proportional as it decreases along with time.
Finally, to sum up this analysis I would like to say that either or these possibilities can come to shape and instead of being predictive, I would rather stay speculative over the time as the price further develops in the coming future.
Feel free to share your opinion on BTC in the comments below.
Onto the analysis :-
As we can identify, the price precedes to take forms of Five Waves sequence labelled with numbers 1 through 5 (motive waves) which propels the market in the direction of the main trend.
After the Five Wave sequence completes, the Corrective Waves labelled with alphabets A, B & C (corrective waves) begins which partially retraces the progress made by the motive waves.
Moreover, under the compound construction of the Five waves structure there are sub-waves of lower degree. For instance, Wave 1 (in yellow box) consists of sub-waves Wave (1) through Wave (5) (in white) and the corrective waves (A), (B) & (C) which ensures the completion of one complete cycle consisting 8-waves. Hence, giving us the Wave 1 and same goes for the rest of the Waves.
The main focus of this model is to provide an outlook for the upcoming bull market and the ATH that comes along with it to which there are two possibilities of where the Wave 5 will peak, all illustrated on this chart :-
Possibility 1) We get the new ATH in Q2 of 2022, price above 135k.
Possibility 2) We get the new ATH in Q4 of 2023, price above 210k.
There are few concurring as well as contradictory factors that support both the possibilities to be true. Furthermore, the chart suggests that the time cycle of each impulse wave (Wave 1, 3 & 5) has kept on increasing as BTC matures to which the volatility is inversely proportional as it decreases along with time.
Finally, to sum up this analysis I would like to say that either or these possibilities can come to shape and instead of being predictive, I would rather stay speculative over the time as the price further develops in the coming future.
Feel free to share your opinion on BTC in the comments below.
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