Key Takeaways
- • Elliott Wave analysis published by Investing.com states that Bitcoin's five-wave advance from the July 1 low remains intact, but a larger corrective Wave-2 has most likely begun.
- • Bitcoin peaked at $87,336 on September 21 and fell to $80,368 on October 8, erasing all gains since the analysts' prior update when BTC traded near $80,440.
- • The analysts' preferred count places the Wave-2 correction ideally at $69,000 (+/- $4,000), with the upper end preferred, before Wave-3 targets new all-time highs.
- • A less-favored alternate count allows one final rally toward the ideal topping zone near $93,000 before the correction.
- • The analysts argue the bear market has ended and the four-year cycle is over if the five-wave sequence is confirmed, a view that is contingent on the pattern completing as projected.
Summary
The analysis notes that Bitcoin peaked at $87,336 on September 21 and subsequently declined to a low of $80,368 on October 8, erasing all gains since the last update, when BTC was trading near $80,440. Based on this price action, the authors conclude that a larger correction, labeled Wave-2, has most likely begun before the next bull run can start.
The preferred scenario places the Wave-2 low ideally at $69,000 plus or minus $4,000, with the upper end preferred. An alternate count allows for one last rally toward the ideal topping zone near $93,000 before the correction, though the authors state they do not rely on it. The analysts say that if the five-wave sequence from the July 1 low completes as projected, it would confirm that an important cycle low was struck on July 1, meaning the bear market that followed the prior cycle peak ended prematurely and the four-year cycle is officially over. The article describes the bull market as confirmed on that basis, with Wave-3 targeting new all-time highs once Wave-2 completes.
The analysis is technical in nature and relies on Elliott Wave Principle counts and Fibonacci and resistance confluence, with charts sourced from StockCharts.com. Publisher context on the same topic includes divergent views, with some commentators forecasting a pullback toward $70,000 or lower and others arguing the bear market is nearly finished.
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