In this episode of NewsBTC’s daily technical analysis videos, we are once again examining a possible expanded flat correction in Bitcoin. After the correction, the bull markets could resume.
Have a look below at the video.
VIDEO: Bitcoin Price Analysis (BTCUSD), October 18, 2022
We also provide video highlights below, as well as analysis of BTCUSD with the Ichimoku Bollinger Bands SuperTrend and other technical tools.
Three strikes: BTCUSD rejected from 50-Day Moving Average
The daily BTCUSD price action rejected the 50-day moving mean. The rejection is now the third since September. This makes the 50MA an important line to cross before there’s any further upside.
Comparing the behavior of the 50MA around the 2018 bear markets bottom and zooming in, it becomes clear that bulls must break through this level to regain control over their daily timeframes. Due to its proximity to the yellow 100-day moving Average, we would expect the next target to be the $200-day Moving Average located at $26K.
Bitcoin will break the 100-MA and 50-MA. $26K would be next. Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin CME Futures Shows Flat Expanded Pattern Near Perfect
BTC CME Futures line charts allow price movements over the past 18 month to fill in an extended flat pattern almost exactly. The expanded flat has an elevated high at the top (B wave) and then a lower low when the C wave ends. Five sub-waves make up the C wave.
BTC CME chart starts with a bear market. This would indicate that the primary count is indicating an expansion of flat correction in wave 4, and that there’s still wave 5. Elliott Wave Theory allows you to project wave 5,’s peak, by finding the Fibonacci inverse extension to wave C.
Bitcoin’s top price would be $90,000. At the 1.272 Extension, Bitcoin will reach $90,000. However, if Bitcoin is extended to 1.618, Bitcoin will rise over $137,000.
Can The Crypto Winter End With A Little Of The Log Growth Curve
This isn’t an uncommon place for Bitcoin to reach its lowest point, despite the negative macro sentiment and potential recession risk, as well as the fact that each floor has been pushed out yet again.
Bitcoin prices continue to climb along the logarithmic curve of growth. The narrowing curvature has contained all price movement throughout the history of cryptocurrency. It would be strange for it to suddenly stop right now.