BTCUSD Is Approaching A Major Top - Bears Should Take Over Soon
The Bitcoin weekly chart above shows the price action since the 2017 major high of ~$19800.
The overall correction seems to be unfolding as a double zigzag or possible flat pattern. The decline from the 2017 top unfolded as a simple A-B-C zigzag pattern with a triangle in wave B of (W).
While the rally from the 2018 low of ~$3150 has been unfolding as a simple zigzag as well. Wave A is a sharp advance, followed by the decline in wave B that took the form of a simple zigzag and made a low in March during the Covid-19 pandemic. Since then, the advance has resumed in wave C, which is taking the shape of an ending diagonal.
Most important thing is that wave C is usually equal to wave A in a zigzag pattern and most of the time it retests the upper boundary of a parallel channel. So, in the days ahead it's plausible to see the price moving higher to the upper trendline of the channel around ~$17500 zone if wave (X) is indeed a zigzag pattern. In the case of a flat pattern, the price can move all the way to the 2017 top of $19800 and even beyond.
However, once this anticipating rally is done with, a decline back to the 2018 low of ~$3000 is high plausible in the month ahead to complete the three-wave corrective move in wave (Y). The days ahead are not so good for the bulls and investors should only consider short-term buying opportunities.
What's your view on Bitcoin? Let me know in the comment.
Thanks,
Veejahbee.
The overall correction seems to be unfolding as a double zigzag or possible flat pattern. The decline from the 2017 top unfolded as a simple A-B-C zigzag pattern with a triangle in wave B of (W).
While the rally from the 2018 low of ~$3150 has been unfolding as a simple zigzag as well. Wave A is a sharp advance, followed by the decline in wave B that took the form of a simple zigzag and made a low in March during the Covid-19 pandemic. Since then, the advance has resumed in wave C, which is taking the shape of an ending diagonal.
Most important thing is that wave C is usually equal to wave A in a zigzag pattern and most of the time it retests the upper boundary of a parallel channel. So, in the days ahead it's plausible to see the price moving higher to the upper trendline of the channel around ~$17500 zone if wave (X) is indeed a zigzag pattern. In the case of a flat pattern, the price can move all the way to the 2017 top of $19800 and even beyond.
However, once this anticipating rally is done with, a decline back to the 2018 low of ~$3000 is high plausible in the month ahead to complete the three-wave corrective move in wave (Y). The days ahead are not so good for the bulls and investors should only consider short-term buying opportunities.
What's your view on Bitcoin? Let me know in the comment.
Thanks,
Veejahbee.
