E BTC/USD Is Trading In Wave IV Correction

Today we will talk about cryptocurrencies, specifically the strongest Bitcoin and its price action from a technical point of view and wave structure from the Elliott Wave perspective.

Cryptocurrencies are up yes, but ALTcoins not so much, so the strong rally on BTCUSD is mainly because of BTC. Dominance, which we see it still dominating in the future. It also means that BTC may easily remain in the uptrend.

BTCUSD 2counts, Daily

dailyBTC2counts

Well, if you are familiar with Elliott Wave, then you know that an impulsive five-wave cycle needs to be completed before we may see a slowdown. So, after a recent extended rise followed by a break-even above the base channel resistance line, seems like BTCUSD finished wave III and it looks like it's currently just consolidating within wave IV before the uptrend for the final wave V resumes.

Wave IV correction can be sometimes very complex, so at this stage, we are observing two possible scenarios. Either we will see a sideways price action within a potential triangle pattern or we will see an irregular A-B-C flat correction that can retest 16000 support level.

As said above, be aware of the final push to the upside towards 20k-24k area as long as it's trading above the base channel and 12500 invalidation level. Even some of the strongest ALTcoins can see more upside like ETHUSD, however, meanwhile weaker ALTcoins may stay slow, sideways, and under bearish pressure.

Be humble and trade smart!

If you love our analysis or you are interested in market-sentiment cycles, then you may want to look at our Elliott Wave charts!

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.

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