Bitcoin (BTC) is currently undergoing a corrective phase, as identified by the Elliott Wave Theory. After completing the third extended wave, BTC is now in Wave 4, which often retraces to the 0.382 Fibonacci level. This suggests a potential price drop to around $106,600. The correction is unfolding as a W–X–Y pattern, with the internal ABC subwaves of Wave W completed, and BTC currently in the rising phase of Wave X. Once Wave X concludes, another lower low is anticipated, again around $106,600.
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🔍 Understanding the Elliott Wave Theory
The Elliott Wave Principle posits that market prices move in predictable patterns, consisting of five waves in the direction of the main trend (impulse waves) and three waves against it (corrective waves). These patterns are fractal in nature, meaning they repeat across different timeframes.
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📊 Current Market Scenario
Wave 3 Completion: BTC completed its third extended wave, indicating a strong upward movement.
Wave 4 Correction: The market is now in Wave 4, a corrective phase that typically retraces to the 0.382 Fibonacci level, suggesting a potential dip to $106,600.
W–X–Y Pattern: The correction is taking the form of a W–X–Y pattern, with BTC currently in the rising phase of Wave X.
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📈 Potential Future Movements
After the completion of Wave X, another lower low is expected, potentially bringing BTC back to the $106,600 level. This could present a strategic entry point for traders anticipating the next impulse wave.
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⚠️ Cautionary Notes
While Elliott Wave analysis provides a framework for understanding market movements, it's essential to consider other factors such as market sentiment, macroeconomic indicators, and geopolitical events. Always conduct thorough research and consider multiple perspectives before making trading decisions.
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2047-0Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.* *