The Bitcoin price is still stuck and moving sideways. However, an Elliott Wave market cycle has shown that there will be a break soon in this boredom.
The predicted price action is so well-defined that layering Bitcoin over it leaves little doubt as to what lies ahead for cryptocurrency. Have a look and make your decision.
Learn More About Elliott Wave Theory and the Guideline of Alternatives
While Bitcoin’s maturity is increasing with every bull cycle that passes, it still remains a speculative investment. Narratives are what drive price action. If the cryptocurrency is bullish it will move in an impressive parabolic impulse upward. If things turn bearish, it becomes a scary rollercoaster ride and many are ejected.
While markets may seem to be unpredictable, there are many times when they are predictable. In the 1930s, Ralph Nelson Elliott developed what he referred to as Wave Principle. According to Wikipedia, “Elliott stated that, while stock market prices may appear random and unpredictable, they actually follow predictable, natural laws, and can be measured and forecast using Fibonacci numbers.”
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Elliott Wave Theory is the name of today’s study. Each “wave” has a specific type of characteristic and guidelines. There are two types of waves: bullish or bearish. Waves that are oddly numbered are impulse waves moving in the primary trend direction. While waves that are even numbered are corrective phases, they move against the primary trend.
Waves can alternate between negative and positive growth. They also vary in severity. According to the Guideline of Alternation one correction tends to be sharp and the other flat or sideways. If this is applied to Bitcoin price action, the future looks even clearer.
Is Bitcoin going to continue following this path?Source: BTCUSD from TradingView.com | Source: BTCUSD on TradingView.com
The Flat-Style Correction is Over. What’s next for Bitcoin?
The length of each correction is also different, according to Elliott Wave Theory. Flat-style corrections are more painful and take longer to complete. Sharp corrections, however, tend to go away much quicker than flat-style ones. Due to the harshness of sharp-style corrections, there is still a kind of bear market syndrome in which the market expects that the market will behave the same way again.
Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet| Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet
The Guideline of Alternation states that there is a very low chance of having two corrections of the exact same nature. Two sideways corrections can occur in rare cases, but not two sharp corrections. This indicates that when Bitcoin’s price turns around, corrective wave 4 should have ended and grand finale wave five will commence.
Wave five has ended. What’s next? A bear market is underway, which will be the longest and most severe in Bitcoin’s history.
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