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Bitcoin: Long Term Correction ...

Bitcoin: Long Term Correction May End In July This Year
CONTENT

  • Bitcoin is likely in wave Y of the W-X-Y correction.

  • This wave may end in the $ 2000- $ 2200 area.

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Bitcoin noted a maximum of $ 13,790 on June 26, 2019 and has been declining since then. Historically, the currency may be in wave Y of a long-term W-X-Y correction.

Compared to the all-time high in December 2017, the high in June 2019 is just another rising low. This suggests that the bitcoin (BTC) rate is still in line with a long-term downtrend..

Cryptocurrency analyst and trader il Capo Of Crypto (@CryptoCapo) drew attention to this possibility. He shared on Twitter a chart that he hopes reflects further PTS price action. According to his analysis, the price is now in the stage of completion of the W-X-Y correction, in the final wave Y. Most likely, the wave will end in the $ 2800- $ 3100 area. Another possible target level could be the $ 2000- $ 2200 area.

Bitcoin: Long Term Correction ...

$ BTC – htf EW count update

The idea of ​​a WXY correction on the bigger cycle was already here. Now, it’s more likely.

Main target: $ 2800-3100
Secondary target: $ 2000-2200

Invalidation above $ 8000 # BTC https://t.co/uoosIr7UKZ pic.twitter.com/ZlIuKnJDvE

– il Capo Of Crypto (@CryptoCapo_) March 14, 2020

Will Bitcoin really hit these levels, or has the currency already hit the bottom? Let’s try to figure it out.

Wave analysis

A W-X-Y retracement often occurs on charts after price has completed the fifth wave of the Elliott pattern. Below we tried to represent these waves on the chart..

The main problem in this case is time periods. While the entire growth period was 2709 days, we are now at the 847th day of the correction. Since the final wave of this formation is now predicted for the currency, the maximum period for the duration of the correction should be 1000-1200 days. Although the time intervals of the growth and correction phases do not have to be identical, nevertheless in this case it is a rather large discrepancy..

Even if we count by waves, the up and down phases of the fifth wave still developed over 500 days compared to about 300 days of the W-X-Y correction. It makes us question this formation.

“A-B-C” vs “W-X-Y”

The main difference between the standard A-B-C and W-X-Y corrections is sub-wavelength analysis. Within the A-B-C pattern, there is usually a 5-3-5 or 3-3-5 wave count. Meanwhile, each W-X-Y correction wave consists of three sub-waves, it looks like a 3-3-3 correction.

Since W and Y waves are often the same length, the current correction could end in July 2020.

Bitcoin: Long Term Correction ...

Below we highlight three main areas that can act as a basis for a subsequent price reversal:

  • $ 2800- $ 3100
  • $ 2000- $ 2200
  • $ 900- $ 1100

Of these three options, the most likely area for the completion of the wave seems to us $ 2100. The decline from the top of wave W to the top of wave X was 39.41%. It would make sense to assume that the decline from the bottom of wave W to the bottom of wave Y would be of a similar magnitude, since waves W and Y are often the same length.

Regarding the other two support areas, $ 2,800 is near the current bottom of wave W, and the $ 1,000 area would require a longer-term correction and a very long wave Y. This is not entirely impossible, but the price will need to break through important support areas to reach this level..

Thus, the BTC rate may be completing the W-X-Y correction that can be highlighted on the chart after the price hit an all-time high in December 2017. The most likely area for completion of the correction could be the $ 2000- $ 2200 area. Perhaps the price will reach it in July 2020.

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