What Is Elliot Wave Theory:
According to Elliott Wave Theory, market prices follow a pattern of alternating between two distinct phases: an impulsive phase and a corrective phase. Impulsive phases are consistently divided into a sequence of 5 lower-degree waves, which, in turn, alternate between having a motive and a corrective character. This means that waves 1, 3, and 5 are considered impulses, while waves 2 and 4 represent smaller retracements of waves 1 and 3.
Is Bitcoin BTC Following Elliot Wave Theory?
Perhaps, its our assessment that there was a fundamental change in the markets after FTX’s collapse, and sins January Bitcoin went up a whopping 92%, Is this just a bear market rally or the start of a new uptrend and the first wave in what could turn into a 5 wave Elliot wave theory structure to come.
After bitcoin put in its yearly high $31,878 on the 13th of July its been correcting and very low volume. We call into question Elliot wave theory here has this correction is occurring after a 5 wave move which is very visible. The question we seek to ask is, is this now a ABC corrective phase after a 5 wave completion and if so what does that mean for the future??
Have we had the ABC correction or is it still to come, this is a question that I think perhaps is on all our mind as traders and investors in Bitcoin and crypto generally as bitcoin is still that tide that rises and sinks all ships. Interestingly If the ABC (B and C completion) is still to occur then this could tie in with a potential head and shoulder pattern that may see bitcoin complete its ABC correction around $20,000. This is still to be seen and if it was to occur would imply substantially lower prices for altcoins.
These are two scenarios to watch out for, the deciding factor will be weather you take out July’s high meaning the correction is likely complete, at that the uptrend this year will likely resume. The $30,000 level for bitcoin is of great importance technically and a taking of it will be pivotal and confirm out suspicious we’ve held sins January (2023) of 2022s downtrend being over.
A Possible Elliot Wave Future For Bitcoin:
So if we are indeed following Elliot wave theory which we appear to be to date, that would imply that the larger 1 wave is now complete and we are waiting for the 2 wave to finish which is a corrective move, after that wave 3 will likely occur which is the largest of the waves dictated by Elliot wave theory. Something to bear in mind, its impossible at this stage to work out exactly where the waves will go as we cannot see into the future but its likely that you will follow a Elliot wave like structure in this uptrend and if wave 3 is to come strap yourselves in!
Bitcoin is on the cusp of becoming a ‘global asset’ as mentioned by Larry Fink BlackRock (the largest asset management company in the world) recently. A bitcoin ETF is likely at this point and to find out why its such a big deal consider checking out this article ____________