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.
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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.