BTCUSD: Elliottt Wave Analysis

25 nov 2020

To the trained eye, a simple chart of price action depicting the corresponding waves, is as beautiful as any work of art, while it must be referred that technical analysis is an art by itself. More specifically, in the above chart we can see the underlying beauty as well as symmetry of Bitcoin's price, tempered and forged by the expectation, biases, and emotions of all market participants. Price is approaching the All-Time-High level of $19,666.00 and is expected to test it, as a major resistance and undergo selling pressure, due to the fact that the intermediate (X) wave of the indermediate (WXY) corrective pattern (which is being unfolded since the establishment of the All-Time-High) is expected to end at around that level, just at the 161.8% Level of Fibonacci Expansion . It is anticipated that this will mark the end of the current rally and the begining of a bear market together with the start of the indermediate corrective wave (Y), which has to go down at least up to $9,467.57, followed by $6,481.0 and $3,122.88. In addition, in the Weekly Timeframe , the price approximates the All-Time-High Level, without making Higher Highs and Higher Lows but rather in a direct-forward way, as a result of a breakout, while the 20, 50 and 200 simple moving averages are left behind and cannot support the price to have the thrust to actually pass through the ATH Level at present. Due to the theory of Mean Reversion, price has to come back to the MAs. Taking profits out of the table is a really good idea.