Bitcoin may have completed a W-X-Y wave correction.
The price has broken the rising wedge and the head and shoulders pattern.
Support levels are located at $ 6,300, $ 5,800 and $ 4,800.
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Initially, bitcoin showed positive dynamics in trading on April 12, and at the moment reached $ 7201. However, then prices went into a mode of active decline, going to the $ 6542 area in just a few hours. At the time of writing, BTC is trading at around $ 6,700.
Elliott Wave Analysis On BTCUSD #Elliottwave #bitcoin
Perhaps this rebound marked the exit from the bearish pattern downward, which signals the prospects for further decline.
Bitcoin & Crypto Index Technical Analysis Elliott Wave
Elliott Wave Analysis also speaks in favor of the bearish forecast. Cryptocurrency trader @SmartContracter tweeted a bitcoin chart showing that the token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More completed W-X-Y correction.
This is a bearish pattern that suggests a continuation of the negative trend. Moreover, on short-term timeframes, a head and shoulders pattern is observed, which serves as an additional negative signal.
alotta btc bullas confident bottom is in, but for me its very hard to argue that rise from lows is impulsive pic.twitter.com/SGZ2HXye86
– DeFiDecentralized finance (DeFi) is financial services built on blockchain technology that offer users access to an open, efficient and … More is heating up Bluntz (@SmartContracter) April 13, 2020
We can actually highlight the W-X-Y wave pattern on the Bitcoin charts that bottomed out on March 13, exactly one month ago. The sub-waves of this formation are as follows:
- W: A-B-C
- X: 1-2-3-4-5
- Y: A-B-C
The cryptocurrency is currently trading in a rising wedge pattern, which is considered a bearish pattern. On April 10, the price made a downside breakout and has been mostly falling since then.
Thus, both the wave analysis and the pattern signal that Bitcoin will decline in the near future..
BTC Bearish Elliott Wave count – Bitcoin Technical Analysis.
The negative is added by the fact that BTC has completed the formation of a short-term head and shoulders pattern, which also indicates a bearish outlook for the token, which may head towards immediate support around $ 6,300..
There are two more points that complement the bearish picture..
First, the rally ended when the price reached the 00.618% Fibonacci retracement from the previous decline. This retracement level is often a sign of a reversal.
Secondly, after exiting the wedge pattern, bitcoin confirmed it in the form of a long upper wick, after which it fell sharply.
However, it is too early to say that Bitcoin will refresh lows during a potential bearish move. And although, as the editorial staff of BeInCrypto wrote earlier, the fall of the token to the $ 2200 mark cannot be ruled out, there are three support levels on the way down, which may entail a reversal before the quotes reach this minimum..
First of all, it is worth noting two important support levels of $ 6300 and $ 6800.
Support also occurs at $ 4800, if reached, the price will form a triple bottom.
Even if Bitcoin loses the $ 4800 level, it will most likely make several bounces from the above support levels before.
So, bitcoin broke down the rising wedge and has been declining since then. The price is likely to continue falling to at least the nearest of the noted support levels. It’s hard to say at the moment. Will the token stay above the low on March 13.
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