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Bitcoin: Elliott Wave Cycles Approaching The Support
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Looking at Bitcoin daily chart, we can see RSI is still below red trendline, so we may see another drop in the RSI before a reversal. Even NVT is looking for a drop into supportive zone after recent sideways corrective movement. So, watch out for that decline, probably final one before BTCUSD finds a temporary bottom.
- BTC inflows triggers more weakness
- BTC unfolds first leg of A-B-C correction within Wav (IV)
- Supports: 24k, followed by 20k.
What we also noticed recently is that there were a lot of BTC inflows recenty, which makes you wonder why? It may sound bullish, but its not. “”Its like if bring a car into a car-shop; you obviously have a different idea-exchange it for something else.” It can be one of the reasons why BTCUSD can see a final dip, maybe even on big volume which was often the case on cryptocurrencies before market stabilized; similar personality with downtrend on stocks.
Bitcoin inflows
From an Elliott Wave approach BTCUSD turned down exactly from projected resistance area back in April when we spotted a top with an ending diagonal that completed wave V of (III). So far we see a nice turn down into wave (IV) correction, which will obviously take even more time to unfold as we see five waves down from the highs as part of the first leg, wave A. So, after a corrective recovery in wave B, that can occur anytime soon, we will have to be aware of another sell-off for wave C to complete a three-wave A-B-C correction .
Bitcoin Daily Elliott Wave Analysis Chart
About the Author
Gregor Horvatcontributor
Gregor is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that, he was working for Capital Forex Group and TheLFB.com.
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