WATCH: Bitcoin Bear Market Corrective Patterns Examined | BTCUSD September 14, 2022
September 14 2022 - 3:15PM
NEWSBTC
In this episode of NewsBTC’s daily technical analysis videos, we
examine two bear market corrective patterns in Bitcoin price
according to Elliott Wave Theory. Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 14, 2022
After yesterday’s CPI report, Bitcoin is once again on the ropes.
At this point, we need to consider the potential of another
downside move if support fails. In yesterday’s video, it was
mentioned we would be reviewing two potential corrective patterns
according to Elliott Wave Theory to provide a bullish and bearish
scenario. Related Reading: WATCH: Bitcoin Brutalized After August
CPI Data Release | BTCUSD September 13, 2022 The Bullish Scenario
For BTCUSD The bullish scenario has the current support level
holding. In this case, the pattern would more than likely be a
double-three correction, with a zig-zag correction during wave
Y. During a complex correction in Elliott Wave, other
patterns like flats, triangles, and zig-zags can connect. When
drawing such corrections, the larger correction is drawn using WXY,
while each sub-correction is labeled with a more familiar ABC.
Adding potential credence to this type of correction, price will
have found support at precisely the 0.764 Fibonacci level which is
a common termination point for certain types of Elliott Wave
corrections. Quite the dump the second CPI numbers were released |
Source: BTCUSD on TradingView.com The Bearish Breakdown Version In
the bearish version, we will have what is more than likely an
expanded flat pattern. An expanded flat is a larger ABC pattern,
with a five-wave impulse down during wave C. This would give us one
more level down to find support much lower. A deeper correction in
Elliott Wave can alternatively terminate at the 0.854
Fibonacci. The level is also similar to the 1.414 Fibonacci
extension taken from the length of the A wave. The ultimate target
would be between $13,500 and $14,800 before a possible reversal.
The weekly buy signals are now at risk | Source: BTCUSD on
TradingView.com Related Reading: WATCH: Bitcoin Weekly Chart Fires
Bottom Signals At Open | BTCUSD September 12, 2022 Why Bitcoin
Could Have Another Bull Run Left As long as Bitcoin price doesn’t
close a weekly candle below $11,500, according to an Elliott Wave
motive wave setup, we should have one more wave up to go. In
conclusion, Bitcoin price has a 50/50 chance of correcting further,
but a much higher probability of reversing to new highs once the
current correction has ended regardless of its termination point.
The long term view on Bitcoin remains bullish. Will BTC close above
$40K to end the year? | Source: BTCUSD on TradingView.com Learn
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education. Please note: Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
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