Bitcoin price continues to stagnate and moving sidewaysbut according to the cryptocurrency after the Elliott Wave market cycle, a boredom break is slated for soon.
Price action follows the predicted trajectory so perfectly that when Bitcoin layers are layered directly on the comparison, there is no doubt about what comes next for the cryptocurrency. Take a look and decide for yourself.
All about Elliott Wave Theory and Rotation Guidelines
Bitcoin matures with each passing time bull cycleHowever, it remains a speculative asset. As such, narratives tend to drive price action. When the cryptocurrency is bullish, it is moving in a strong parabolic impulse up. When things are going downhill, roller coaster rides get intimidating and many are thrown out along the way.
Markets can seem like an unpredictable roller coaster at times, but on several time scales, they are quite predictable. In the 1930s, Ralph Nelson Elliott developed what he referred to as the wave principle. to me WikipediaElliott stated that although stock market prices may seem random and unpredictable, they actually follow predictable natural laws, and can be measured and predicted using Fibonacci numbers.
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Today, the study is more commonly referred to in Elliott Wave Theory. Each “wave” has a specific type of characteristics and guidelines. The waves alternate between ascending and descending phases. Odd numbered phases are impulsive waves that move in the direction of the primary trend, while even numbered waves are corrective phases that move against the primary trend.
In addition to alternating waves between positive and negative growth, they also alternate in the degree of their intensity. According to the principles of rotation, one patch is usually acute, the other is flat or lateral. When this exact example is dropped Bitcoin price action The path ahead appears clearer.
If Bitcoin continues to follow the path, what comes next? | Source: BTCUSD on TradingView.com
What’s next for Bitcoin when the flat pattern correction ends?
The The length of each correction It also varies, according to the Elliott wave theory. Sharp corrections tend to finish much more quickly than a flat-patterned correction, which causes a painful lateral deviation. The market itself is still experiencing a kind of post-shock bear market syndrome from the severity of a sharp style correction, which expects the market to behave in the same way again.
Related reading | Time vs. Price: Why This Bitcoin Correction Was the Most Painful So Far
However, according to the rotation guidelines, the probability of two of the same type of correction is very low. In rare cases, two lateral corrections occur, but two acute corrections never occur. This indicates that when the Bitcoin price finally turns, it will Fourth corrective wave It must be complete and the fifth final wave will begin.
What happens after the fifth wave is completed? Another bear market, possibly the worst and longest in Bitcoin history.
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