Bitcoin – the most bearish scenario!

23.05.2022 12:20 am

Hello, everyone!

As you know from my previous analysis I am waiting for the local pump for BTC because of the accumulation on the 1h timeframe, but the bear market is not over yet in my opinion. I can use the wave theory as the evidence of my idea.

I wrote 2-3 months ago that the Bitcoin is in the global corrective wave 4 which is represented as the ABC flat correction. Taking into account that the wave B broke the previous ATH, the wave C broke the $29k which was correctly predicted by me. I made a lot of local mistakes, but the overall trend direction is right. Now I can see that the wave C is developing as the terminal diagonal triangle. Such structure usually have the largest wave 1, and this is the only case when the wave 4 can overlap the wave 4.

Looking at the huge volume I can interpret the current price level as the wave 3 end. In case of triangle we should see the correction to the 0.38 Fibonacci retracement level ($34500) which is almost coincides with the bounce target. After that we have to see the last wave 5 to the 0.61 Fibonacci extension level ($21600) which could be the end of the bear market. Now I am still in long trade which will be closed at $34500.

Good luck!

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