The digital currency continues to rally and making new highs. Price rallied to $6000 last week. It has been on an intraday bearish mood to $5500 region. What should we expect next based on 25 October Bitcoin Elliott wave analysis?
25 October, AtoZForex - Bitcoin hit and bridged $6000 last week and then dropped lower. Price has dropped this week from the last high close to $6200 thereby losing about 13%. The recent dip is corrective and could trigger a new buying opportunity for short term traders and even give more confidence to long term holders. After the correction, the next price to test is $8000. If the correction will be deeper, we should expect price to drop to $5000 before returning upside. The chart below shows why the bullish strength is not yet gone.
The chart above shows the progression of an impulse wave which is not yet complete. According to Elliott wave theory, price rallies in five waves and declines in three waves. The 5-wave is called Motive wave while the 3-wave is called Corrective wave. Impulse waves are motive waves that are made of non-overlapping swings/waves that are often sharp. Price seems to be in the final stages (wave 5) after which a large drop will be highly expected. The 4th sub-wave of wave 5 might drop to the 5000 support level before resuming upside. It is also important to know the corrective wave emerging and the levels to validate or invalidate this forecast. The chart below shows a closer look at the current dip from the perspective of Elliott wave theory.
25 October Bitcoin Elliott wave analysis: intraday view
Price made an intraday double zigzag pattern just above the $5100 intraday support. A break above $5757 could trigger a bullish drive above $6200 and send price toward $7000. If this wave count is validated, price will stay above the low of the y-wave at $5360. A break below $5360 with price staying $5757 could lead to a triple zigzag pattern toward $5000-$5100 support zone. We will have to see how this play out. The levels are very important to know which of the wave scenario has a bigger chance of playing out. The dip is corrective and a rally may start soon. Stay tuned for the next update.
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