The price of Bitcoin is gradually losing its position since the end of June, when it reached 13,880 US dollars. Bulls already more than two months rely on support inarea of 9000 dollars. They no longer have that luxury. On September 23, BTCUSD was still pulling around $ 10,000. The next day, it fell to $ 7,998. Although the exact "reason" for yesterday's decline is a matter of speculation, there was a way to get ahead of it all. When we applied the Elliott Wave principle to Bitcoin's price charts, he gave us not one, but two possible calculations. Fortunately, both pointed in the same direction and had the same level of cancellation. The chart below, sent to our subscribers on September 11, displays them.
The 4-hour BTCUSD chart gave us an idea ofrollback structure from 13,880 dollars. One possibility was that it was a sequence of first or second waves to the south. In this case, more weakness should have followed in wave iii in (iii) at 3. This calculation remained valid as long as Bitcoin is trading below the top of wave (ii) at $ 12,325. An alternative was that the decline from $ 13,880 was simple a zigzag with a triangle in the middle, whose wave “e” up was at the final stage. Here, too, Bitcoin looked vulnerable and should not have exceeded $ 12,325. “Regardless of whether the fall from $ 13,880 is a sequence of first or second waves or a zigzag,” we thought, “it makes sense to expect more weakness to $ 8000” . The updated chart below shows how the situation unfolded.
Two weeks after Wave analysisElliott led us to the conclusion that Bitcoin is likely to fall, the price has fallen below $ 8,000. An invalid level of $ 12,325 was never compromised, and each of these two counts is still possible. Unlike many others, Elliott Wave analysts generally admit that there is nothing specific in the markets. That's why we often work with primary and alternative counting at the same time. Sometimes they contradict each other, but sometimes they show one direction, which greatly simplifies the decision-making process. This is exactly what happened in Bitcoin this month.
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