Elliott Waves Show That BTC May Have Bottomed, cryptotintuc will look at several potential wave numbers for bitcoin (BTC) to determine if the downtrend has ended.
Long term wave count analysis
There are two main possibilities for the long-term wave count.
The number of bullish waves suggests that the price has reached or very close to the bottom of wave four (white) in a bullish wave movement starting in March 2020.
There are three main factors that support the possibility that this is the correct wave count.
- Wave two and wave four are of similar length
- The price is consolidating above the support line of the channel connecting wave one and three
- Weekly RSI is deep in oversold territory and at an all-time low.
A drop below the high of wave one at $13,880 will invalidate this particular wave count.
The decreasing number of waves indicates that the entire five-wave formation has ended. In this capacity, BTC is in a new long-term downtrend.
This anomaly in the number of waves is the large difference in time and intensity between waves two and four along with waves one and three.
So, following the rules of Elliott Wave, the first wave count is more likely to be true.
Short term movement
As for the short-term wave count, the upside potential indicates that the price has completed or is very close to completing the ABC correction structure (red). In which, wave A:C has an exact ratio of 1:1.61 and wave C contains a transformed 5-wave bearish impulse (black).
So, if this quantity is proven correct, the price will reverse from the current level.
The decreasing wave count suggests that the drop from the previous all-time high was a five-wave bearish movement.
At the moment, both numbers suggest that Bitcoin (BTC) is likely to bounce in the short term. However, the shape and length of the rise will help determine what is the correct wave count.
In any case, a drop below $13,880 will mean the long-term trend is bearish.
You can see the Bitcoin price here .
Disclaimer: All For Information Purposes Only And Not To Be Considered As Investment Advice You should do your own research before making an investment decision. Cryptotintuc is not a financial advisor and will not accept any responsibility in connection with your investment.
Cryptotintuc
Source: Beincrypto
