Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Where Will Bitcoin Bottom?

Published 01/23/2024, 01:12 PM

In our last update on Bitcoin, where we presented a forecast for 2024, we found that based on historical evidence,

BTC moved late November/early December from the Early-Bull phase into its Mid-Bull phase, which will end in late 2024, each time this phase transition happened, BTC struggled for a few months: topped around January +/-1 month, bottomed around February +/- 1 month with an average loss of around 20 +/- 5%, and then rallied into July +/- 1 month. Thus, we should expect Q1 to be “soft”, and Q2 to be strong. From an EWP perspective, our primary expectation is for BTC to be in the green W-2 of red W-iii, which matches the four-year cycles. See Figure [1] below.”

Fast-forward to January 11. BTC peaked at $49054 and has since experienced an 18% pullback. It is the largest since the rally from the September 2023 low started, strongly suggesting the green W-2 to ideally $37+/-2.5K is underway. Indeed, Q1 is weak so far, as all gains made since December 4 have now been erased. Besides, we have refined our Elliott Wave Principle (EWP) count to account for all waves since that low.

Figure 1. The daily chart of BTC with technical indicators and detailed EWP count.Bitcoin-Daily ChartSince 2nd waves are corrections, which always move in three waves and are labeled as “a-b-c,” BTC should now be in (grey) W-a of green W-2. See Figure 1 above. Typically, a correction’s first leg (W-a) reaches around the 38.20% retracement of the previous same-degree impulsive advance. In this case, that is all the green W-1; 38.2% is at $39790, and currently, BTC’s price is right about there. Meanwhile, several technical indicators like the RSI5 and MACD are oversold. Thus, we should expect a “dead cat bounce,” the grey W-b, which typically retraces 50-76.40% of the W-a. Sometimes more, sometimes less. In this case, that would mean $45.0 +/- 1.5K. Once (grey) W-b is complete, the third and final leg, W-c, should materialize. C-waves are often fast and furious and relate to the previous W-a as 1x a to 1.618x a. Again, sometimes more, sometimes less. But we can only work with what we know. These typical Fibonacci-based relationships thus target $35+/-1K, which matches the aforementioned W-2 target zone of $37.5+/-2.5K.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

The dotted horizontal lines on the chart in Figure 1 show what we call “warning levels” for, in this case, the Bears. Above the blue dotted line at $42,140 is the first signal that grey W-b is underway. The grey line at $43525 is the second signal, etc. Each higher level/signal increases the odds that W-b is underway. If BTC’s price moves above the red dotted line, the January 11 high, it tells us that the W-3 is likely already underway.

Assuming W-2 bottoms at around $34K while knowing W-1 was $24K ($25->$49K), we can calculate W-3 to reach ideally: $34K + 1.618 x $24K = $72.8K. Thus, as stated in many prior articles:

We have been Bullish on BTC for quite some time. However, our Bullish scenario is entirely invalidated below $25K. Only when that happens will we change our overall, longer-term Bullish POV, which BTC is proving more correct for each update we provide in that, based on BTC’s past cycles, made up of four more minor phases, it is currently in the “Mid Bull” phase and thus close to the next Bull run, which can target $100-200+K by the end of 2025.

Latest comments

Where is this ‘C’ wave?
Very good
The logic of your analysis and the use of system tools is admirable. Good luck in your work
I wonder what your personal success rate is with your sophisticated Tech analysis? Is it way higher than average or what?
Looks good Im following.
look out below
at $0 one day....
like the sun will die someday.
Go woke, go broke yo!
ponzi Party...Baby needs a new pair of shoes
in me opinion the program is great don't hurt the creatrs
very Very good
it's great I didn't think it was suitable already program be beautiful
Quite clear! Thx
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.