Today we talk about Bitcoin, its price action from a technical point of view, and wave structure from Elliott’s wave perspective. Bitcoin actually doesn’t show any evidence for the bottom and bullish reversal yet, when looking at the short-term charts. Instead, we are still tracking ongoing bearish price action possibly to even 30k level. We assume that bulls will have to wait till the second half of 2022.
Notice that in the 4-hour chart the bitcoin is sharply and impulsively down from 4k, clearly with five waves of decline, which confirms a bearish reversal. So, we can expect lower levels at least in three waves (A)/(1) – (B)/(2) – (C)/(3) towards 30k-33k area or maybe even down to June/July 2021 lows and below 29k region within a five-wave cycle, where we will be looking for strong support zone. Currently we are tracking minor A-B-C corrective rally within wave (B)/(2) that can find the resistance in the 42k-44k, maybe even 45k level, from where we will have to be aware of another eg down.
BTC/USD, 4H
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