In our previous Bitcoin analysis Bitcoin Crash, Retracement, or Reversal? Big Move Coming!, we talked about the $34,653 critical resistance. And right now, the Bitcoin price is struggling at that price region unable to breakthrough.
In this Bitcoin analysis, we will be looking at the crypto price from another angle using Elliot wave analysis. We will also be making a bearish forecast for the Bitcoin price to potentially crash to the $27k region in the coming days.
Bitcoin Is Forming The 4th Wave In The Elliot Wave Series
We are starting the Elliot wave count from the previous ATH of $41,928.54. After making that high, the Bitcoin price crashed more than 25% in a matter of hours. This impulsive crash would be our 3rd wave in the Elliot wave count.
After we saw this 3rd wave crash, we saw a pullback up to the 50% Fibonacci level. This Fibonacci level serves as a key retracement level for prices to pull back to before continuing the prior trend which in our case is downward.
The fib retracement also coincides nicely with the $34,653 critical resistance we talked about at the beginning of this article. This creates market confluence and increases our confidence in a bearish trade setup.
We are also seeing a bearish divergence occur further confirming the growing Bitcoin bullish weakness for the short term.
Well, an Elliot wave is made up of 5 key moves. We are currently on the 4th move, meaning we have one more leg to the downside before this move is completed.
If this sell-off occurs, there is a high probability that we might see Bitcoin crashing to the $29,000 or as low as the $27,000 region in the coming days.
But for this sell-off to occur, the Bitcoin price must not break the $34,653 critical resistance which also servers as our 4th wave in this Elliot wave analysis. A price surge above that level invalidates this wave count. This makes that $34,653 region the best place to position your stop loss.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With