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Bitcoin Elliott Wave technical analysis [Video]

BTC/USD Elliott Wave technical analysis – Daily chart

  • Function: Counter Trend.

  • Mode: Corrective.

  • Structure: Zigzag.

  • Position: Wave C.

  • Direction (next higher degrees): Wave V of Impulse.

  • Invalidation Level:

BTC

BTC/USD trading strategy

Bitcoin recently reached a record high of $120,000. According to the Elliott Wave count, the price is now in a wave 2 correction. This corrective move is anticipated to test the Fibonacci retracement zone between 0.5 and 0.618 before resuming its upward trend in wave 3.

Trading strategies

  • Strategy

  • For Short-Term Traders (Swing Trade):

    • Monitor the 91,000 – 87,000 range for price testing and a potential reversal signal.

  • Risk Management

    • If the price moves below $87,000 without showing a reversal pattern, a reassessment of the wave structure is recommended.

BTCUSD Elliott Wave technical analysis – Four-hour chart

  • Function: Counter Trend

  • Mode: Corrective

  • Structure: Zigzag

  • Position: Wave C

  • Direction (Next Higher Degrees): Wave V of Impulse

  • Invalidation Level:

BTC/USD trading strategy

Following its peak at $120,000, Bitcoin appears to be in a corrective wave 2 phase. The current analysis projects a move into the Fibonacci 0.5 to 0.618 range, where the price could potentially initiate wave 3 upwards.

Trading strategies

  • Strategy

  • For short-term traders (swing trade):

    • Look for the price to retest the 91,000 – 87,000 area and wait for a reversal signal to confirm entry.

  • Risk management

    • Should the price fall below $87,000 with no reversal, the analysis should be revisited.

Bitcoin Elliott Wave technical analysis [Video]

Author

Peter Mathers

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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