Turbulence in the crypto market: what’s next for Bitcoin?
BTCUSDT Analysis
Bitcoin (BTCUSDT) suffered a sharp decline from $70K to $63K, causing widespread concern and dealing a major blow to the expected altseason. Many traders have seen their portfolios lose 50-60% of value, and even automated trading bots have struggled with the recent downturn. The big question on everyone’s mind is whether this downtrend will continue or whether we are heading towards a reversal.
Bitcoin weekly timeframe analysis
To better understand, let’s look at the 1-week BTC timeframe with our advanced cryptocurrency trading strategy. This timeframe is critical for analyzing the current bullish run through Elliott Waves.
First, we identify the highest high on the Awesome Oscillator, which corresponds to the recent peak of $73k. This suggests that we are likely witnessing wave 4. The minimum requirement for this wave to complete is for the Awesome Oscillator to cross the zero line, indicating that wave 4 could last until at least September. The good news is that the price target has likely been reached or close to being reached, with a potential maximum drop of $49K.
Forecasts for the future
Once wave 4 is complete, we expect a major wave 5, which could push Bitcoin to between $85k and $107k, depending on whether it lasts. This final wave will end the bullish rally, potentially leading to a significant bear market.
Is Wave 3 Really Over?
Typically, Bitcoin has a way of surprising us. We initially expected it to reach $77k as wave 5 within wave 3, but the Awesome Oscillator indicated early divergence. This suggests that the fall from $72k to $52k was simply wave A within wave 4.
Current status and further actions
Bitcoin is currently in wave 4, a challenging phase for traders. Wave A seems to be over; a bullish reversal bar has already been printed on the 1-day time frame. We now expect a bullish trap in wave B targeting the 0.5-0.61 Fibonacci retracement area around $64k. The thing to watch out for here is bearish sentiment, which could lead to another drop to around $49k. Once the ABC cycle ends, we expect the final push to the all-time high of the bull rally.
Conclusion
Despite the bearish sentiment and fear of the market, we predict an increase in the price of Bitcoin in the near future. Although the dump is not yet completely over, its most intense phase appears to be behind us. Many bears may assume that the game is over with double tops, but it is important to remain focused on data and analysis rather than emotion.
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Skyrex.io Team
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