EWFOREX.NET
Featured Chart by Stockcharts.com
Technical Analysis by Raul Fernando Luna Toro
Price Action
The Bitcoin uptrend seems to have ended. Price reached two intraday highs of $25250 on Feb 16 and Feb 21, forming a double top pattern. Currently, the cryptocurrency has fallen and is trading at the $23700, which is slightly above yesterday’s $23574.69 low. If the price falls below this support, it is likely to head towards the Green Minor Degree lower channel trend line.
Elliott Wave Analysis
Price has completed five Minor Degree Waves, which indicates that Intermediate degree (A) has capped off at the $25250.00 intraday high. As the market now retraces in Intermediate Degree (B), the risk is to the downside. Fibonacci impulse retracements of 38.2%, 50%, and 61.8% are located at $20943.40, $19767.88, and $18658.34, respectively, indicating potential support levels in the event of a market downturn.
The crypto experienced a significant decline of 77.57% falling from the $69000 all-time high set in November 2021 to the $15476 November 2022 bottom. Afterward, the cryptocurrency bounced in a five-wave pattern suggesting the start of a new uptrend.
However, considering that the downtrend from the all-time high also occurred in five waves, it is possible that this new uptrend is a corrective pattern at Primary degree.
As mentioned earlier, the Minor Degree bullish impulse needs to undergo a correction before the uptrend can continue. This correction is likely to create buying opportunities at various support levels. Therefore, it is advisable to watch out for these support levels and take advantage of them.
