Bitcoin – Elliott waves analysis

20.06.2022 6:40 pm

Hello, everyone!

Yesterday I found the evidence that the bear market is not over, but bounce is anticipated. Today I decided to use the trading chaos approach to the Elliott wave counting for the Bitcoin, as a result I have the question to the BTC market. As you know I failed last autumn with the bull market top definition using this approach, now I decided to learn more about this approach and today I am going to translate my knowledge to you. Guys, I wanna ask you to give me the constructive criticism if you are aware of the Elliott waves trading approach.

1D timeframe Elliott waves

Let’s take a look at the 1D timeframe BTCUSDT chart of the KuCoin exchange. How to define which wave now is on the market? The awesome oscillator is usually used for this purpose. The wave 3 has the maximum value of the AO. If the current day’s AO histogram column will be closed as green. The divergence will be confirmed. The AO value for the current wave is slightly less than for the supposed wave 3. Can it be the final wave 5, guys? Let’s wait until daily candle close because everything is possible. I also market the critical level of the subwave 4 as the red line. The balance line of the alligator is also located there. Moreover the price formed the bullish hammer candle with the nice angulation with alligator with the high at the same level. If the price will break through this level we will see the impulsive rally to $29k. I have only one question: why the supposed wave 5 has the maximum volume?

What we can say definitely

On the local 4h timeframe on the chart below we can see the cleat 1-2-3-4-5 Elliott wave cycle. Here we can definitely conclude that the wave 5 was finished according to AO divergence. Now the price is breaking the alligator’s upper line. It is the clear buy setup, which increases the probability of breaking the critical level. We have to watch carefully will the current grow form the A-B-C correction or the 1-2-3-4-5 cycle. In the second case the bear market could be ended.

Fig1. 4h timeframe Bitcoin

Good luck!

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