Hello traders, and welcome to our new Elliott wave analysis on cryptocurrenices.
We have been bearish on bitcoin for the last two months after we identified the wedge pattern in April. Since then we have seen a very nice and dip pullback, but the question is “if this is only one part of a higher degree correction that will resume for the rest of the year”, or “is this correction already coming to an end” ?
If you look closely, you can see very nice five waves down the peak so in our opinion it’s still only wave A of a three-wave drop. However, there will be rallies, and maybe the next one is not far away based on sentiment and price structure. We see nice potential support at 20000 -25000 area. So if you’re looking to be long cryptos then you will have to be very selective as the upside can be limited and temporary. In the video below we will also look at Doge and Matic coins.
Grega Founder of ew-forecast.com, and proud team member of ForexAnalytix.