Bitcoin Can Be Trading In The Middle Of A Higher Degree Correction from technical perspective and by Elliott wave theory.
Bitcoin with ticker BTCUSD hit projected target area for wave III and it’s now turning down after the BTC spot ETF approval, ideally within a higher degree wave IV correction before the uptrend for wave V resumes. Looking at the 4-hour chart, it came into 38k support area quite sharply, so we think it’s wave A and that correction can take more time within a three-wave A-B-C corrective setback that can later retest 38k-35k support zone for wave C, but after some corrective rally in wave B that can recover the price up to 45k – 46k resistance area.
The reason why Bitcoin can see bigger intraday recovery is also Blackrock Bitcoin ETF (IBIT), which is still pointing higher for wave 5 after recent corrective pullback in wave 4. Later, when 5th wave is completed, we will have to be aware of an A-B-C corrective setback that can slow down the Bitcoin price again.
For detailed view and more analysis like this, you may want to watch below our latest recording of a live webinar streamed on February 5th:
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