Bitcoin could be at the end of the correction cycle
The current correction looks very similar to an Expanded Flat Correction originating from Elliot Waves theory. A marginal higher high (69k) followed by a leg down that breaks the previous low (30K). EW theory expects the last wave in the Expanded Flat Correction to be a motive wave (5 waves) structure. Completion is typically at the 100% and 123.6% extension of wave A projected from the end of wave B.
The 100% target lies at 33k which caused the initial bounce to 48k, but lacked follow-through and ended up with a bear flag-like structure.
The bear flag broke down and is now heading towards the 123.6% extension. Price bounced just before it. This could be a very bullish signal, but I think this is just the 4th wave bounce. This 4th wave has room to go up to around 33k. After that, I expect to see one last wave (5 of 5) that will barely make a new low and touch the 123.6% target at 25.0275. In very bullish cases, it could fail to make a new low.
Conclusion: according to this perspective buying between 25k to 30k looks like a great entry for the next wave up
Happy trading!
Sources:
1. Expanded Flat Correction (EW). elliottwave-forecast...and-flat-correction/
The 100% target lies at 33k which caused the initial bounce to 48k, but lacked follow-through and ended up with a bear flag-like structure.
The bear flag broke down and is now heading towards the 123.6% extension. Price bounced just before it. This could be a very bullish signal, but I think this is just the 4th wave bounce. This 4th wave has room to go up to around 33k. After that, I expect to see one last wave (5 of 5) that will barely make a new low and touch the 123.6% target at 25.0275. In very bullish cases, it could fail to make a new low.
Conclusion: according to this perspective buying between 25k to 30k looks like a great entry for the next wave up
Happy trading!
Sources:
1. Expanded Flat Correction (EW). elliottwave-forecast...and-flat-correction/