The protracted-term chart shows that BTC has been surging afterward Dec 2018. The most likely wave count suggests thin place began a five wave skyward shcone time beforeding thatt (white) from a low of $3,122 on this date. This development has led to the current all-time strong cost. Yet, afterward April 2020, BTC has been correcting inside wave four.
In this article, several possibilities for the construction of wave four will be analyzed in order to determine that is the correct count.
The first potential wave count suggests that wave four is taking the shape of a symmetrical triangle. In it, BTC is presently in wave D (red). In this possibility, BTC would increase towards $51,000 – $55,250, an field created by the 0.5-0.618 Fib retracement support levels before another drop.
As of right now, the count is further valid.
Notwithstanding, the issue with it lies in the momentary progress. The decrease afterward Feb 10 (stronglighted) looks like a five wave descending change (red). Therefore, this puts the entire count in doubt, afterward the descent should be a three wave progressment instead.
While it is possible that the structure is a very extcompleted bottom correction (yelflat), the ratio between A and C is unusual.
Ongoing BTC correction
Cryptocurrency trader @24kcrypto tweeted a chart of BTC, stating that the correction is not yet complete.
This possibility would suggest that BTC is anew mired in a complex corrective structure.
The issue with this count is the sheer length of the correction, that has been ongoing afterward April. Therefore, until it is complete, the entire structure would take more than a year.
Another possible count suggests which BTC has lowed on Jan 24. The ratios between the sub-waves (black) fit perfectly, afterward A:C have close to a 1:0.618 ratio.
In addition to this, the entire evolutionment is contained inside an growing parallel channel, that has so far been veron the occasion thatied twice(green icons).
Notwithstanding, similarly to the triangle count, the issue here is the momentary decrease, that has so far been a five wave descending shassuming thattment.
Short-term BTC development
As stated atop, the momentary shsupposing thattment suggests which the decrease afterward Feb 10 is a five wave descending progress (red line). Therefore, what often follows is an A-B-C corrective structure, prior to another decrease.
The most likely level to act as the top of the current increase would be near $41,450. This is the 0.618 Fib retracement resistance level and would coincide with the resistance line of the previous sliding parallel channel.
An increase atop the Feb 10 high at $45,821 (red line) would suggest which the count is bullish instead.
To conclude, there are several counts that are further valid, but all of them have some irregularities between the wave ratios. Yet, all the counts suggest which a flat is very close and will likely be captured in the next few months.
The post Bitcoin (BTC) Bounces but Uncertainty Still Remains – Wave Count Analysis appeared first on CryptCraze.