Bitcoin Price Taps $50K, But Here’s Why Bulls Aren’t Out Of The Woods
05 Octubre 2021 - 8:35AM
NEWSBTC
Bitcoin price this morning touched $50,000 – a feat that might have
have made a bear market look a lot less likely. But bulls could be
celebrating too early, and a max pain scenario of a symmetrical
triangle few currently see could end up shaking up both bears and
bulls in the days ahead. Here is a much closer look at the
symmetrical triangle, what the corrective pattern suggests, and why
bulls certainly aren’t out of the woods just yet. Downtrend Remains
Unbroken, Symmetrical Triangle Possible Downtrends can be
deceiving. They don’t always necessarily mean a bear market, and
even if a downtrend line is broken, another one can form higher and
prevent the reaction bulls are expecting. Related Reading | Could A
Bitcoin Bull Flag Leave Bears Blindsided? For example, when Bitcoin
broke out from bear market downtrend resistance, the early 2019
rally to $13,000 was the result. However, because of the new
downtrend line created at that high, Bitcoin spent another full
year and then some below the new downtrend resistance. There is
still one more downtrend resistance to go before bulls are out of
the woods | Source: BTCUSD on TradingView.com Assets often must
clear three opposing trendlines for the primary trend to resume.
This situation is happening now, but on much smaller time scales.
Bitcoin price has made it through two downtrend lines, but one is
left. Drawing a symmetrical support line provides the potential for
the triangle that few technical analysts are talking about
currently. Valid trendlines tend to have at least three touches,
but the third touch could provide the final E-wave of a triangle
corrective pattern during a bull market. The wave 4 correction
could be an Elliott Wave triangle pattern | Source: BTCUSD on
TradingView.com Bitcoin Price Corrective Wave Could Be Nearing Its
End The E-wave could clear out any positions built at support
around $40,000, crushing bulls who went all in on what they thought
was a bull flag breakout. The move would also restore bearish
exuberance, and push Bitcoin price back into the $30,000 range to
suck in more short positions. Only then might Bitcoin price make it
through the top downtrend line to continue higher. But it all
depends on where the E-wave “terminates.” It is worth noting that a
such a triangle during a bull market often leads to new highs.
Related Reading | Bulls Regain Control Over Bitcoin Trend Strength:
What To Expect An Elliott Wave corrective triangle will appear
during a wave 2 or 4 of a motive wave, which represents the primary
trend. An Elliott wave corrective triangle and its higher lows
would keep the bull run structure in tact, and fit the Elliott Wave
rule of wave alternation. If Bitcoin is in a motive wave, wave 5
should begin soon | Source: BTCUSD on TradingView.com This rule
suggests that only one of the two corrective waves – wave 2 or 4 –
will result in a sharp correction. The other would be a sideways
correction lacking a lower low. Not only do corrective waves tend
to alternate in overall severity, the patterns tend to switch. This
means that if wave 2 was an Elliott Wave zig-zag, then wave 4 would
be a flat, triangle, or other pattern. Eliott Wave Theory provides
the roadmap for a trend. The roadmap continues to say until proven
otherwise, that once wave 4 ends, wave 5 begins. But for now, bulls
aren’t yet out of the woods and a sweep of lows could still be
possible. Follow @TonySpilotroBTC on Twitter or via the
TonyTradesBTC Telegram. Content is educational and should not
be considered investment advice. Featured image from
iStockPhoto, Charts from TradingView.com
Waves (COIN:WAVESUSD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Waves (COIN:WAVESUSD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
Real-Time news about Waves (Criptodivisas): 0 recent articles
Más de Waves Artículos de Noticias