Bitcoin (BTC) Morning Update: A Correction Bottom is NOT an Event but a Process

Overnight Bitcoin (BTC) price action has taken prices to sub $8k temporarily. The bottom line of the wedge pattern was temporarily pierced and price returned back inside the pattern in a hurry. So, is the bottom in? Well, it could be in; but a correction bottom is never an event but a process. That process is measured using Elliott Waves and Chart Patterns. If the final five waves of the diagonal is to complete, the blue waves show a probable pathway. It means that the current bounce could place the wave 4 and that means one more lower low. This low could pierce the lower line once more and generate another bull wick by coming back inside the pattern. This pierce could take BTC to $6,800 or so and to me that would be ideal as it would wash out the final remaining weak hands.

The sellers are running out of bullets! They have fired most of their ammunition and there is a finite number of sellers and that number is dwindling with each passing day of this correction. That is why price is well within the wedge pattern. Given the potential liquidity shortage that occurs when there comes a point where not a seller can be seen as they've all sold; Bitcoin can explode violently upwards. The below chart shows the near precision crossing of the Apex by the 0.618 Fib level zone. This is significant because it's not just coincidence but rather because it's a level of likely bottom region.