How much more Bitcoin can go down?
This is a billion-dollar question. To answer it, a simple look at the previous correction phase can shed some light to the unknown future. Let’s dig in.
As can be seen in the chart, waves 2 and 4 in the previous correction phase retraced up to the 0.5 and 0.382 Fib levels, respectively. Interestingly, the waves 3 and 5 went down to the 1.272 and 0.5 Fib extension levels, respectively. This means the wave 3, which was the extended wave among waves 1, 3 and 5, had a deeper correction (wave 2) before going down. On the other hand, the weaker correction (wave 4) led to wave 5 going down only to the 0.5 Fib extension level.
Now, let’s see how the current correction phase has behaved so far. It can be seen that the wave 2 retraced up to the 0.382 Fib level; a weak retracement. Consequently, wave 3 went down to the Fib extension level equal to the wave 1. That means, in this scenario, the wave 3 is not the extended wave. On the other hand, wave 4 retraced up to the 0.618 Fib level; a strong retracement. This can only mean that wave 5 could be the extended wave and go down much more than wave 3 has went; at least to the Fib extension level 1. Therefore, guessing that wave 5 could go down to the area around 1.414 and 1.618 Fib extension levels is not farfetched. Let's see what happens.
This is a billion-dollar question. To answer it, a simple look at the previous correction phase can shed some light to the unknown future. Let’s dig in.
As can be seen in the chart, waves 2 and 4 in the previous correction phase retraced up to the 0.5 and 0.382 Fib levels, respectively. Interestingly, the waves 3 and 5 went down to the 1.272 and 0.5 Fib extension levels, respectively. This means the wave 3, which was the extended wave among waves 1, 3 and 5, had a deeper correction (wave 2) before going down. On the other hand, the weaker correction (wave 4) led to wave 5 going down only to the 0.5 Fib extension level.
Now, let’s see how the current correction phase has behaved so far. It can be seen that the wave 2 retraced up to the 0.382 Fib level; a weak retracement. Consequently, wave 3 went down to the Fib extension level equal to the wave 1. That means, in this scenario, the wave 3 is not the extended wave. On the other hand, wave 4 retraced up to the 0.618 Fib level; a strong retracement. This can only mean that wave 5 could be the extended wave and go down much more than wave 3 has went; at least to the Fib extension level 1. Therefore, guessing that wave 5 could go down to the area around 1.414 and 1.618 Fib extension levels is not farfetched. Let's see what happens.
Note
So, it seems Bitcoin has started a strong upward trend. However, Bitcoin correction might not be over yet. It seems a downtrend channel is forming and currently Bitcoin is bouncing from the upper line. Also, notice the broken blue downtrend line, which is a major line, and it is very likely for Bitcoin to make a pullback on it.
Trade fermée: cible de profit atteinte
If Bitcoin current candle close above the downtrend channel's upper line, that means this scenario is failed and Bitcoin major uptrend has already started. Let's see what happens.
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Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.