In this episode of NewsBTC’s daily technical analysis videos, we examine two bear market corrective patterns in Bitcoin price according to Elliott Wave Theory.
Take a look at the video below:
In this episode of NewsBTC’s daily technical analysis videos, we examine two bear market corrective patterns in Bitcoin price according to Elliott Wave Theory.
Take a look at the video below:
After yesterday’s CPI report, Bitcoin is once again on the ropes. At this point, we need to consider the potential of another downside move if support fails. In yesterday’s video, it was mentioned we would be reviewing two potential corrective patterns according to Elliott Wave Theory to provide a bullish and bearish scenario.
The bullish scenario has the current support level holding. In this case, the pattern would more than likely be a double-three correction, with a zig-zag correction during wave Y.
During a complex correction in Elliott Wave, other patterns like flats, triangles, and zig-zags can connect. When drawing such corrections, the larger correction is drawn using WXY, while each sub-correction is labeled with a more familiar ABC.
Adding potential credence to this type of correction, price will have found support at precisely the 0.764 Fibonacci level which is a common termination point for certain types of Elliott Wave corrections.
Quite the dump the second CPI numbers were released | Source: BTCUSD on TradingView.com
In the bearish version, we will have what is more than likely an expanded flat pattern. An expanded flat is a larger ABC pattern, with a five-wave impulse down during wave C. This would give us one more level down to find support much lower.
A deeper correction in Elliott Wave can alternatively terminate at the 0.854 Fibonacci. The level is also similar to the 1.414 Fibonacci extension taken from the length of the A wave. The ultimate target would be between $13,500 and $14,800 before a possible reversal.
The weekly buy signals are now at risk | Source: BTCUSD on TradingView.com
Related Reading: WATCH: Bitcoin Weekly Chart Fires Bottom Signals At Open | BTCUSD September 12, 2022
As long as Bitcoin price doesn’t close a weekly candle below $11,500, according to an Elliott Wave motive wave setup, we should have one more wave up to go.
In conclusion, Bitcoin price has a 50/50 chance of correcting further, but a much higher probability of reversing to new highs once the current correction has ended regardless of its termination point. The long term view on Bitcoin remains bullish.
Will BTC close above $40K to end the year? | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.
Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.
In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.
Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.
Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.
Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.
In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.
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