Bitcoin’s Last Stand

By Aleksandar
September 06, 2018

We at TradingAnalysis rigorously follow the Elliott Wave methodology to identify the prevailing market patterns  to then distill into clear cut trading opportunities. At TradingAnalysis we analyze each market at multiple degrees of trend to identify the most opportunistic and risk averse trading opportunities.

Our most recent example is Bitcoin. On the daily time frame Bitcoin has traced a corrective consolidation from latest highs known as an “A-B-C” pullback (blue (A)-(B)-(C)) with the  blue (C)-wave in the final phase of decline targeting the $5,000 area. Specifically, C-wave developed a diagonal pattern which unfolds as a 5-wave trending pattern (green waves 1-5), with each of the 5-waves unfolding in an A-B-C pattern.  

To confirm our bearish outlook in Bitcoin  other cryptos like ETH are pointing lower, which helps us to stay with our bearish outlook. This increases our chances of Bitcoin reaching $4,800/$5,000 as the potential lows.

Despite the overwhelmingly BULLISH sentiment of the crypto space held by the mainstream media and the crypto believers, the patterns identified through the lens of Elliott Wave suggested the last 2 months were in fact bearish and short positions are preferred. Click here to learn more about our trading style.