BTC / USD is expected to remain correctional for a bit longer – either deep toward Fibonacci rating levels or shallow through the ABCDE contracting triangle.
Bitcoin (BTC / USD) shows two lower highs and a higher lows. This indicates a bearish correction within the strong uptrend.
There seems to be a contracting triangle chart pattern with the best papers right now. Let’s review the path of least resistance.
Price Charts and Technical Analysis
The BTC / USD is expected to remain in correction mode for a while longer. But once the correction is complete – either deep toward Fibonacci rating levels or shallow through the ABCDE contracting triangle – then the uptrend should resume and aim for the $ 50,000 target.
The BTC / USD is now building a correction ABC (pink) – flat ABC (to the side) or zigzag ABC (deep correction). This may also extend to the ABCDE triangle chart pattern:
A triangle chart pattern is more likely if price action bounces (blue arrows) on the 144 ema and bottom of the previous A wave.
A cut from the bottom could indicate a zigzag ABC instead (a pink C ‘wave).
Wave 4 correction (purple) is expected as long as the price action does not break below the 78.6% Fib (yellow circle).
Continuation of bullish trend is expected either after breaking the resistance (green arrows) and showing a bull flag (gray arrows) or after the ABCDE is completed.
On the 1 hour chart, we can see how the correction progresses.
ABC (gray) correction completed wave B (pink) at Fibonacci scale level 78.6%. Now another ABC (gray) occurs within wave C (pink).
The main criteria will be the cut above the resistance (orange) or below the maintenance (green) trend lines.
The analysis is done with the ecs.SWAT method and the ebook.