Bitcoin has potentially completed its wave 4 expanding triangle, just as a cyclical timing model that shifts between impulses and bear phases suggests a new impulse. Elliott Wave Theory provides clear characteristics regarding each wave.
The bear market began in 2018 after the 2019 high. The bear market was an ABC correction, with the B-wave as a triangle. Triangles can ONLY appear before the final move in a sequence - bull or bear.
From the bear market low you begin to count EW impulses and corrections. Wave 1 shocked people and few saw it coming. It showed BTC still had life left. There was lots of FOMO and lots of feeling like things took off without people.
Wave 2 corrected almost all of wave 2. Very common. Retraced ~78% which is a perfect wave 2 Fib. Wave 3 was very obvious, extended, and sucked in the masses. It was much longer than wave 3.
Wave 4 is the profit-taking and new entrants coming in phase. This creates long, extended, sideways consolidation. A wave 4 is commonly a flat or a triangle. Expanding triangles are rare, but still fit a wave 4 and really cause bearish sentiment to kick in at the E-wave, just before taking off.
For wave 5, crypto behaves more like commodities in the sense that wave 5 can be extended and even the most powerful wave of all. The low supply, and resulting FOMO from watching the prices the market had expected come to fruition happen without people, causes panic bids and extreme high valuations.
Then the real bear market comes. Crypto ain't seen nothing yet.
The bear market began in 2018 after the 2019 high. The bear market was an ABC correction, with the B-wave as a triangle. Triangles can ONLY appear before the final move in a sequence - bull or bear.
From the bear market low you begin to count EW impulses and corrections. Wave 1 shocked people and few saw it coming. It showed BTC still had life left. There was lots of FOMO and lots of feeling like things took off without people.
Wave 2 corrected almost all of wave 2. Very common. Retraced ~78% which is a perfect wave 2 Fib. Wave 3 was very obvious, extended, and sucked in the masses. It was much longer than wave 3.
Wave 4 is the profit-taking and new entrants coming in phase. This creates long, extended, sideways consolidation. A wave 4 is commonly a flat or a triangle. Expanding triangles are rare, but still fit a wave 4 and really cause bearish sentiment to kick in at the E-wave, just before taking off.
For wave 5, crypto behaves more like commodities in the sense that wave 5 can be extended and even the most powerful wave of all. The low supply, and resulting FOMO from watching the prices the market had expected come to fruition happen without people, causes panic bids and extreme high valuations.
Then the real bear market comes. Crypto ain't seen nothing yet.
CoinChartist is run by Tony "The Bull", a level 3 CMT student & technical analyst fascinated w/ Elliott Wave Principle, Hurst Cycle Theory, W.D. Gann, Japanese Candlesticks, & other classical charting methods. Visit coinchartist.io for free TA education!