Bitcoin Start of growth or further collapse

In the last update, growth was expected to continue without update 6422, but this forecast turned out to beinaccurate. The erroneous interpretation of the upward impulse (from this mark) as the beginning of growth turned out to be part of wave C in an extended flat (see previous charts).

However, the collapse that occurred a few weeks ago does not cancel the optimistic forecast for the future.

The graph schematically shows furthermovement. At the moment, the impulse from 3858 has not yet been formed, so the rate may still go below this level, but not 3128. Technically, now it is important to return to the ascending channel, its lower border will now be the resistance level, and also close the month (last candle) at least by At these levels, the long lower shadow is a bullish signal, such a not quite classic “hammer”. Based on the totality of all these factors, it will be possible to talk about future prospects.

Recent events:The collapse of markets, the coronavirus and its consequences for the economy, forced the world's central banks, primarily the Federal Reserve, to rapidly flood everything with liquidity, lower rates and take other stimulus measures. This, of course, will not save the real economy, so we are waiting for the main thesis of a future collapse (and perhaps one that is already developing): the worse the economy is, the better for the markets. In this regard, a quick revival in the virtual sector is expected, including cryptocurrency.

Reasonings of many crypto enthusiasts aboutcryptocurrency as a “safe haven” where investors will run in panic, in fact turned out to be far from the truth. For some reason, they chose fiat money, primarily the about-to-collapse dollar. Perhaps, when banks collapse and defaults begin, crypto will really be able to help, but for now it is an exclusively speculative asset whose price depends on risk appetite and the availability of liquidity.

More details: ELLiOTWAVE.ORG