2 years ago
The bearish outlook by the Elliot Wave Theory appeared arsenic Bitcoin tumbled beneath $35,000.
The ongoing Bitcoin (BTC) terms correction could proceed arsenic per astir a century-old method investigation rule called "Elliott Wave Theory."
The interim bearish outlook enactment distant by the Elliot Wave Theory appeared arsenic Bitcoin tumbled beneath $35,000 amid the Russia-Ukraine conflict.
Bitcoin question fractal eyes repetition
The theory, which divides a terms rhythm into 2 sets—one consisting of 5 upward-trending impulse waves and the different having 3 follow-up corrective waves—points to the anticipation of BTC's terms dropping toward $25,500 successful 2022.
At the halfway of its bearish outlook is its grounds of predicting cyclical tops and bottoms passim the Bitcoin market's history, arsenic shown successful the illustration below.
BTC/USD play terms illustration featuring Elliott Waves. Source: TradingViewThe Bitcoin illustration shows 3 superior impulse waves (1, 3, and 5 successful red) and 2 corrective waves (2 and 4 successful red). The 5th question is inactive successful development, underscoring BTC's imaginable to scope supra $100,000 successful the future. But together, these 5 waves correspond an upward structure that volition apt exhaust astatine question 5 and travel up with 3 corrective waves: A, B, and C.
Meanwhile, each ample question marked successful reddish consists of sub-waves, featuring a five-wave beforehand (impulse) successful the absorption of the inclination of 1 ample grade (from 1 to 5 successful black), followed by a three-wave corrections against the higher grade inclination (from a to c successful blue).
BTC/USD play terms illustration featuring sub-waves. Source: TradingViewBetween 2012 and 2018, Bitcoin's terms has repeatedly rallied between question 1 to question 5 followed by a correction from question a to question c. Each time, question c, which coincided with Bitcoin's 200-week exponential moving mean (50-week EMA), marked BTC's terms bottommost and the completion of the alleged Elliott Wave Cycle, beryllium it successful 2015 oregon 2018.
Related: FTX CEO weighs successful connected Bitcoin marketplace outlook amid Ukraine crisis
After 2018, Bitcoin entered a caller Elliott Wave Cycle. It has already undergone the five-wave beforehand — from adjacent $3,200 successful December 2018 to astir $69,000 successful November 2021 — and is present successful the midst of its three-wave correction, awaiting the enactment of its last question c.
BTC/USD play terms illustration featuring the ongoing Elliott Wave Cycle. Source: TradingViewConsidering the adjacent question c appears astir the 200-day EMA, it could mean BTC volition deed levels astir $25,500.
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