TA: Bitcoin Correction Is Over, Price Projection 49225$ By May
So after all the FUD that went on in January bulls will return to the market in the following months. Crashes like these happen only a few times a year, similar to what happened last year (China FUD). These are good times to buy and have confidence that in the big scheme of things prices will rise, as half of trillion dollars market cap for cryptos is like having some spare change in the pocket. Forex market daily trading volume is 7 trillion. How much do you reckon trading volume for digital currencies will be in the future, considering the accessibility of the market and the global scale it can reach? That's why 49225$ for one BTC by the begging of May sounds optimal to me, and here is my Technical Analysis from which I am drawing that conclusion.
This correction has tested the 150 Day EMA which provided a strong support both now and in the past
Looking at some trendlines it is clear that previous resistance was broken and it was now retested as support.
Elliot Waves count shows the end of ABCDE correction that formed a falling wedge. Wedges are known as a multiple price wave reversal pattern. When the pattern completes, and the price breaks out of the wedge, it is usually in the opposite direction the wedge was pointed. This is why it is called a reversal pattern. For example, if a wedge is angled downward —called a "falling wedge"—the price will often break above the top of the pattern and rally.
Notices the bull trap? Did you fall for it? I lowered my B wave below the closing point of the candles because on the higher timeframe you would just see the wick.
And now onto the price projection.
Combining trendlines, Fibo levels and Elliot Waves count we can project the future price action, which brings us to the target price of approximately 49225$ in the first week of May. As the Elliot Waves theory suggests markets are fractal in nature, so 12345 count from the third picture is the sub wave of the wave 1, and ABCDE correction is the wave 2, which leads me to believe that wave 3 is coming anytime now and that this was just a calm before the storm.
If you agree or disagree with my Technical Analisis I would like to hear your reasons why, so make sure to leave a comment below, as I always like to stress test my forecasts.
If this was helpful and encouraging make sure to upvote so that others can benefit from it as well.
Cheers, and happy trading :)
Interesting analysis. I’ve read quite a few other projections that this correction will finish in the $8000 area before it’s over. Hodling until then when I might load up further. Look forward to seeing you at $49k my friend! Roll on the darling buds of May...
Even if the price goes to 8k I'd expect it to be just a short bounce and a retest. If you exited the market, I would strongly suggest using dollar cost averaging for entry, just to be safe.
Agreed - it should bounce from there so should produce a good buying opportunity
check this out though:
https://steemit.com/bitcoin/@drumsta/crypto-market-cap-forming-head-and-shoulders-pattern-are-the-markets-going-do-go-down-further
I hope your right. I'd definitely like to see it test new highs by summer...
Yes, me too. I've been hesitant to buy more even though it is low right now because I've been worried it's never going to grow as much as originally anticipated.
I wouldnt say we are out of the woods yet. Still people are a little bit concerend and I think we will stay around the 11000 Dollar mark for a little bit longer. After that though I am also bullish on bitcoin :-D Good analisis!
My like you have :-D
ALM
@leserge
Agree here, still lots of weak hands that bought much higher and will to look to sell to breakeven...
Exactly!
And I know from past experience goofing around with small trades, the second I get out to break even, that's precisely when it takes off. 🤔
We are not, some suggest another low before the rise, so be aware, but in my mind, everything below 11k is a great entry point.
110% on your side!
check this out:
https://steemit.com/bitcoin/@drumsta/crypto-market-cap-forming-head-and-shoulders-pattern-are-the-markets-going-do-go-down-further
Feel good stuff for the one's who believe :) I believe and appreciate your post! Time will tell but I don't believe at all that these markets are going anywhere but up! The herd is coming!
@haejin should follow you to learn how to properly use Elliot Waves to do a technical analysis.
hahah funny to hear this because I've read the exact same book on Elliot Waves that he is recommending :)
Excellent text, I agree with your Technical Analisis. :)
Thanks bobrock, I hope it plays out like I forecasted it :)
Thank you for this analysis! it does feel like we are getting close to the next wave upward. upvoted and resteemed
Thank you Stu very much appreciated :)
For anyone interested here is my new Technical Analisis, trading pair SALT/BTC
https://steemit.com/money/@drumsta/ta-salt-btc-price-about-to-burst-to-new-highs-342-profit-potential
more usage, less lambo!
I agree
$7000 is the point for (2) you should readjust your graph please @drumsta
Tone Vays also suggests the lower low to 7000$ but I don't believe that will happen, for the reasons and indicators stated in the text.
drop to 7k5 would have been textbook drop. But all have been waiting for this so it maybe dont happens like this drop to 5k never happend... only 5k4.
check this new article that I wrote providing the case for your argument
https://steemit.com/bitcoin/@drumsta/crypto-market-cap-forming-head-and-shoulders-pattern-are-the-markets-going-do-go-down-further