The Bitcoin (BTC) price is likely to complete wave four of a five-wave bullish impulse. After the correction is complete, a significant price rally is expected, moving towards the targets given below.

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Complex Correction

The most likely count is that BTC is completing a complex W-X-Y correction (shown in blue below), currently trading in the Y wave.

The Y wave is taking place in a flat A-B-C (orange), currently in the C wave.

The three most likely targets for the C wave to end would be at $13,166, $12,922 and $12,615: the 1, 1.27, and 1.61 Fib levels (orange fib) of wave A.

Read Also:   Bitcoin is Heading to $20,000, Says Bloomberg Analyst Mike McGlone

Using an external retracement on wave B gives us targets of $12,949 and $12,648 (red fib), coinciding with the latter two targets.

Therefore, the two most likely targets would be where there is a confluence of fib levels, between $12,900 – $12,950 and $12,600 – $12,650.

BTC Chart By TradingView

The C wave is an impulse, so the price is likely in wave three of a five-wave formation (shown in black below). The target for the bottom of the move will become clearer once the impulse continues developing.

BTC Chart By TradingView

Bitcoin Triangle

Cryptocurrency trader @CryptoTony_ outlined a possible wave count for BTC, in which the price is completing wave four inside a symmetrical triangle and will soon break out.

Source: Twitter

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The alternative count suggests that the price is trading inside a symmetrical triangle instead. This is valid since a triangle can create a wave 4, currently seen in the BTC chart.

If the count is correct, the price will complete the E wave (black) near the ascending support line at $13,400, before eventually breaking out.

A fall below the C wave at $13,195 would invalidate the triangle scenario, indicating that the correct count is the complex correction from the previous section.

On the other hand, a rally above the D high at $14,083 would suggest that the BTC trend is bullish.

BTC Chart By TradingView

Bitcoin’s Future Move

As for the future movement, it’s likely that the previous correction is a part of a longer-term wave 4 (orange, highlighted), in an impulse that began on Sept 7.

After the move is complete, wave five would likely end between $16,100 and $16,1300. These targets are found by using the Fib extensions of waves one and three.

BTC Chart By TradingView

Over the longer-term, the main resistance area seems to be between $16,100 – $17,300, the 0.786 – 0.854 Fib levels of the entire previous decline, beginning from the Dec 2017 all time high.

Using Fib extensions from long-term waves 1 and 3 (white) gives targets between $16,800 – $17,100 (white fib), relatively close to the two targets given previously.

Therefore, once the current correction is completed, BTC should rally to somewhere between $16,000 – $17,000.

BTC Chart By TradingView

Conclusion

To conclude, the Bitcoin price is likely to complete its correction below $13,000, before beginning an upward move that would take the price above $16,000.

For News’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of News.




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Analyzing Bitcoin's Short and Long-Term Elliot Wave Count – News

by Douglas Smith
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