Elliott Wave View: Short Term Strength in Bitcoin
In the bigger picture, Bitcoin has been in sideways consolidation since topping out at $13880 on June 26. It did a 3 waves pullback to $9049.54 on July 17 and since then has been sideways. Further correction in larger degree can’t be ruled out as a double zigzag structure from June 26 high, but the crypto-currency needs to break below $9049.54 to validate this view.
In short term, chart below suggests that Bitcoin’s rally to 10952.01 ended wave (B). The crypto-currency has since turned lower and the decline to 9855.11 on September 11 ended wave 1. The internal of wave 1 unfolded as a
Wave 2 rally is in progress to correct the decline from September 6 high (10952.01) as a zigzag structure. Up from 9855.11, wave ((a)) ended at 10465 with the internal as an impulse. Wave ((b)) pullback ended at 10060.95 and wave ((c)) is expected to rally in 5 waves. Potential target for wave ((c)) comes at $10672 – $10816 where wave ((c)) = wave ((a)). From this area, Bitcoin can then turn lower again as far as pivot at 10952.01 high stays intact.
Bitcoin (BTCUSD) 1 Hour Elliott Wave Chart
