Part 1 - Bitcoin and the Next Crypto Bull Market
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Bitcoin and the next Crypto Bull Market
Bitcoin is without a doubt a coin of the future and a way for people to pay for goods by diverting from fiat money. It could also be one of the most important investments of our lifetime.
There are speculators out there who state that BTC is a ticking bomb and that this bubble would burst as never seen before in previous market contractions. Come to think of it, those individuals rang that alarm back in October 2017, when BTC/USD was pricing around $5500. After that, BTC/USD topped an outstanding $19,783.06 reading on December 17th, 2017.
Is it dangerous to invest in Bitcoin or other cryptocurrencies?
BTC/USD dropped in value drastically ever since it peaked, with present prices showing approx. 6500per one Bitcoin.
According to the technical analysis shared below, BTC/USD could show more weakness ahead, before the “crypto bulls” would return.
The simple answer to the question above is: “not if one has patience”.
In the lines to come, an in-depth technical analysis is presented, by using one of the most reliable leading analysis tools out there: the Elliott Wave principle.
As per the current technical analysis, BTC/USD could continue the bearish corrective cycle towards approx. $3500 levels, where a new bullish rally could commence, one which could easily exceed the previously witnessed all-time-high.
Bitcoin – Full Cycle & Elliott Wave Analysis
Part 1 – Weekly Chart – Cycles & The Big Picture
From an Elliott Wave standpoint, and also from the technical perspective, it can be established that the former bullish parabolic swing represents the dominant trend. The down-trend presents multiple overlaps and corrective characteristics, making it a corrective bearish sequence.
In technical analysis, the bearish sequence could represent a “healthy” retracement, one which would be needed if BTC/USD were to resume its bullish destiny.
The all-time-high and peak for BTC/USD seen on December 17th, 2017 has been labeled as Cycle Wave I (black). Moving towards the bearish corrective cycle, this wave has been labeled as Cycle Wave II (black).
Cycle Wave I (black) started ever since the beginning and completed its Motive Wave sequence along with its peak. It is mandatory to state that this not just any Motive Wave, it’s a Bullish Impulse.
The previous rally presents all the characteristics of an Impulse, and this is giving a fellow trader or investor a very valuable hint, thus resulting in thinking that the next bullish cycle would take a Wave III form.
Cycle Wave III’s (black) swing could present an Extension in its impulsive sub-waves, hence the reason why, from a mathematical and Fibonacci point of view, BTC/USD could increase 10 times in value from the price it would bottom out.
The bigger picture points towards the possibility that BTC/USD could rise towards the $35,177.20 levels, from around the $3,310.47 levels.
When would BTC bottom out?
For a clearer view and less noise, the corrective cycle would need to be analyzed carefully.
Cycle Wave II (black) has been labeled and classified as a Complex Corrective Structure, more exactly as a Triple Three in its Primary WXYXZ (red) sub-waves.
The Triple Three Pattern seems to be delimited by a Descending Channel, with the lower parallel trend-line pointing towards the next best point of interest.
According to the weekly chart, Bitcoin/US Dollar could continue falling in a bearish impulse towards the $3500 vibration zone, where it would be expected to react violently and resume the dominant trend, with a never-seen-before rally.
Furthermore, the Daily chart will be closely examined, thus zooming in and getting even closer with this very courageous view on Bitcoin.
Bitcoin is without a doubt a coin of the future and a way for people to pay for goods by diverting from fiat money. It could also be one of the most important investments of our lifetime.
There are speculators out there who state that BTC is a ticking bomb and that this bubble would burst as never seen before in previous market contractions. Come to think of it, those individuals rang that alarm back in October 2017, when BTC/USD was pricing around $5500. After that, BTC/USD topped an outstanding $19,783.06 reading on December 17th, 2017.
Is it dangerous to invest in Bitcoin or other cryptocurrencies?
BTC/USD dropped in value drastically ever since it peaked, with present prices showing approx. 6500per one Bitcoin.
According to the technical analysis shared below, BTC/USD could show more weakness ahead, before the “crypto bulls” would return.
The simple answer to the question above is: “not if one has patience”.
In the lines to come, an in-depth technical analysis is presented, by using one of the most reliable leading analysis tools out there: the Elliott Wave principle.
As per the current technical analysis, BTC/USD could continue the bearish corrective cycle towards approx. $3500 levels, where a new bullish rally could commence, one which could easily exceed the previously witnessed all-time-high.
Bitcoin – Full Cycle & Elliott Wave Analysis
Part 1 – Weekly Chart – Cycles & The Big Picture
From an Elliott Wave standpoint, and also from the technical perspective, it can be established that the former bullish parabolic swing represents the dominant trend. The down-trend presents multiple overlaps and corrective characteristics, making it a corrective bearish sequence.
In technical analysis, the bearish sequence could represent a “healthy” retracement, one which would be needed if BTC/USD were to resume its bullish destiny.
The all-time-high and peak for BTC/USD seen on December 17th, 2017 has been labeled as Cycle Wave I (black). Moving towards the bearish corrective cycle, this wave has been labeled as Cycle Wave II (black).
Cycle Wave I (black) started ever since the beginning and completed its Motive Wave sequence along with its peak. It is mandatory to state that this not just any Motive Wave, it’s a Bullish Impulse.
The previous rally presents all the characteristics of an Impulse, and this is giving a fellow trader or investor a very valuable hint, thus resulting in thinking that the next bullish cycle would take a Wave III form.
Cycle Wave III’s (black) swing could present an Extension in its impulsive sub-waves, hence the reason why, from a mathematical and Fibonacci point of view, BTC/USD could increase 10 times in value from the price it would bottom out.
The bigger picture points towards the possibility that BTC/USD could rise towards the $35,177.20 levels, from around the $3,310.47 levels.
When would BTC bottom out?
For a clearer view and less noise, the corrective cycle would need to be analyzed carefully.
Cycle Wave II (black) has been labeled and classified as a Complex Corrective Structure, more exactly as a Triple Three in its Primary WXYXZ (red) sub-waves.
The Triple Three Pattern seems to be delimited by a Descending Channel, with the lower parallel trend-line pointing towards the next best point of interest.
According to the weekly chart, Bitcoin/US Dollar could continue falling in a bearish impulse towards the $3500 vibration zone, where it would be expected to react violently and resume the dominant trend, with a never-seen-before rally.
Furthermore, the Daily chart will be closely examined, thus zooming in and getting even closer with this very courageous view on Bitcoin.
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