Elliott Wave Theory is a technical analysis framework that suggests financial markets move in repetitive cycles or "waves" driven by collective investor psychology. These patterns are fractal, meaning they repeat on various timeframes.

According to Elliott Wave principles, a typical market cycle consists of five upward (impulse) waves followed by three downward (corrective) waves. Applying this to Bitcoin's recent price movements:

Wave 1: Initiated in early 2024, Bitcoin's price surged from approximately $30,000 to $60,000.

Wave 2: A corrective phase brought the price down to around $50,000.

Wave 3: The most substantial impulse wave, propelling Bitcoin to its all-time high near $108,000 in December 2024.

Wave 4: A corrective decline followed, with Bitcoin's price retracing to about $79,200 in February 2025.

Wave 5: Currently, Bitcoin is in this phase, with prices fluctuating around $79,752.

Following these five waves, Elliott Wave Theory anticipates a three-wave corrective pattern (A-B-C). Given Bitcoin's current position, investors should be cautious of potential corrective movements.#BTC #ElliottWaveTheory