BTC/USD: Advanced Elliott Wave Count Suggesting a Correction

16 сент. 2020 г.

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In this analysis, I will take an extremely technical approach to Bitcoin's weekly chart, assessing it using Elliott Waves.

Analysis
- To begin with, we can count an Elliott Triple Combo Wave (WXYXZ), on a cycle degree
- Wave W is consisted of an Elliott Corrective Wave (ABC)
- Wave X can be any three wave count
- Wave Y is consisted of an Elliott Double Combo Wave (WXY)
- The second Wave X can be any three wave count again
- The last Wave Z is a Zigzag
- In other words, based solely on this Elliott Wave count, we should be seeing a final wave down before the real bullish rally
- Based on the Fibonacci retracement, we have strong support at the 0.618 level, which is at 10k
- The next suggested support is at 0.5, around 8.8k levels
- Interestingly, even if we retest 8.8k levels, the overall trend would still remain bullish, as it would be a pullback from the recent breakout of the long term descending trend line resistance

Conclusion
As always, this far from me trying to predict what might happen to the market. The future is all about preparation, not prediction. This Elliott Wave Count Theory merely suggests one of the many potential cases in which Bitcoin's prices could unfold. However, my stance remains the same as my previous analysis: even an extreme correction down to 8.8k levels would still allow the overall trend to be bullish. As such, it would be wise to buy the dip, rather than look for opportunities to short the top. The trend is your friend.