Bitcoin: Deep Correction Mode Indicates Worst Is Yet To Come

Published 04/11/2018, 04:31 PM
Updated 07/09/2023, 06:32 AM

My first analysis for virtual money is now three weeks (medium chart) old and has lost nothing of its relevance. At that time I had predicted sales down to the lower Triangle line at about $6,200. The trend has not yet advanced quite that far, but not every day is evening! Of course, nothing has changed in the relatively negative long-term advances over the past three weeks.

Outlook:
Currently Bitcoin still forms wave (b) of the superior triangle (a-b-c-d-e). In the course of this wave, an attack on the 1.62 retracement at $6,180 may occur on the following days. The trend is not much lower, as on the one hand this support is extremely robust and on the other hand the lower triangle line is also at this level. After completion of (b), the following (c) will once again bring hope to the chart.

Of course, there is not much to gain from this movement, because at most up to the upper triangle line (c) can develop. Only a sustained breach of the 0.62 retracement at $12,235 would bring some relief; but nothing more. After completion of the triangle, the correction that has been underway since the end of last year (4) continues.

The first target of wave (C) is formed by the 1.62 retracement ($3,798). Wave (C) forms the thrust following a triangle. This movement is usually very dynamic, so that the goal can already be achieved in the coming weeks. With the end of (C) the large (4) is also completed. This means that nothing more stands in the way of a new upward trend.

Bitcoin Chart

Conclusion:
Bitcoin is in very deep correction mode. A larger buy-signal is therefore not to be expected in the near future. Above the 0.76 retracement ($8,482) a small signal up to about $11,000 is generated. Secure your positions, covering all time levels, on the 1.62 retracement ($6,180).

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