Better Trader

Possible sideways move on Bitcoin

After a sharp move up markets often go sideways before moving higher. Here the sideways move on Bitcoin would be wave (iv) taking the shape of a triangle [a,b,c,d,e]. Bitcoin will rebound for wave b, then it will go sideways until there are five waves inside wave (iv). The next move is wave (v) up, the target is above 21000.

Bitcoin forecast

This is a monthly chart of Bitcoin. As the previous rise is parabolic, chances are Bitcoin will go up in the long term (unless the parabolic rise was the final top and Bitcoin is going to zero in the long term). The parabolic rise is an impulse wave, another impulse wave up will start after the current consolidation. That is the most likely scenario. The current consolidation is probably a triangle [A,B,C,D,E] we are now in wave C down. a potential target is 5000. After this move Bitcoin will rally to the 12000 area to complete wave D.

 

On the daily chart the pattern inside wave C could be a double zigzag, the spike at the end of October was wave (x). As Bitcoin tends to rally sharply before going down I would expect a rally to the resistance line near 8700 before the next leg down starts. I would sell near 8700, the target is 5000.