Bitcoin Correction Phase is Likely Over, Will BTC Price Hit $50K in Feb-2024

Crypto analyst Crypto Ed took to his YouTube channel and discussed the recent Bitcoin price trend. As of January 30th, he said changes have been observed in the cryptocurrency market. A green box in the analyst’s chart indicated a potential move to $35,000. However, recent price action has invalidated this prediction.

Previously, Crypto Ed suggested that as long as Bitcoin remains below $40,000, a move to $35,000 in an ABC pattern was anticipated. However, the latest market movements have contradicted this outlook. The analyst now believes that the move to $35,000 is no longer valid.

There was a consideration that a correction might have been completed with a bottom at $38,500, marked as a truncated sea leg. Confirmation of this came with a break above $43,600. Crypto Ed said that the bottom is likely around $38,500, and further upside movement can be expected.

Initially expecting a downward move, Crypto Ed was surprised by a higher market trend. However, a change in perspective led to the belief that a completed Elliott wave cycle may be at hand. The analyst clarified that what was previously assumed to be wave five is more likely part of a larger correction, considering the small size of the correction relative to Elliott wave principles.

Analyzing the Elliott wave chart on the 1-hour timeframe, Crypto Ed pointed out that the correction after the third wave was too small. A bigger correction is deemed necessary before anticipating higher levels. The current expectation is that the market is in the first leg of a corrective phase, to take out lows around $41,000 before a potential upward move to $52,000 or $51,700.

Additionally, the analyst noted a bearish divergence on the 1-hour chart, supporting the idea of an imminent correction. The appearance of this divergence, coupled with signals from technical indicators on the 4-hour chart, suggests that a reversal is likely within the next 24 to 48 hours.

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