Bitcoin’s (BTC) wave count provides an overview of future movement
Bitcoin (BTC) has been moving upwards since June 18th. It is possible that this is the beginning of a long-term wave five.
There are two main possibilities for long-term Bitcoin (BTC) wave counting.
The bullish one suggests that Bitcoin has just begun the fifth and final wave of a five-wave uptrend (white) that started in March 2020.
The main factor supporting this possibility is the fact that the bottom of wave four occurred right at the channel connecting the highs of waves 1-3 and the lows of waves 2-4. Also, the corrective waves two and four had very similar lengths.
A decline below the wave one high of $13,880 (red line) would invalidate this specific count since wave four would fall into wave one territory.
Short Term BTC Amount
If the suggested count is correct, the short-term count would indicate that since the all-time high, price has completed an ABC corrective structure (red), where waves A:C have had an exact 1:1.61 ratio. This is the second most common ratio between waves after 1:1. The number of subwaves is given in black.
If correct, this would mean that a new five wave up move has begun. A decline below the sub-wave to low (red line) of $20,700 would invalidate this particular wave count.
Alternative scenario
Cryptocurrency trader @Thetradinghubb tweeted a chart of BTC showing a complex corrective structure. In it, Bitcoin will make a new low towards $15,000 before the continuation of the upward movement. However, he suggested that the proportions are off, leading him to believe that this is not the correct count.
So, the only other potential count would indicate that the entire five-wave uptrend has come to an end and the price has now begun a long-term ABC correction (white). The number of sub-waves is given in black, which suggests that the price is in sub-wave four and will drop one more time to complete sub-wave five.
While the decline is proportional, the problem with this count is the shallow waves four and five (white). Because of these deviations, the bullish number is still more likely.
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