Bitcoin worth is again at ranges from earlier within the yr, however has but to set a brand new all-time excessive. Final night time’s weekly candle shut nonetheless got here with a brand new damaged file for worth: the very best weekly candle shut within the cryptocurrency’s historical past.
Will the bullish weekly shut result in new highs? If that’s the case, will this be the end result of the bull run? And if not, does that imply a bear market as a substitute?
A brand new file has been set | Supply: BTCUSD on TradingView.com
Bitcoin Value Units New Document For Highest Weekly Shut Ever
In response to TradingView’s BTCUSD Index, the weekly Bitcoin worth chart had a record-breaking weekly shut at roughly $61,528. The quantity stays round $four,000 wanting the cryptocurrency’s present all-time excessive, nevertheless, with new data being set, are new highs a given?
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It’s troublesome to think about a situation the place Bitcoin have been to fails to maneuver greater from right here, particularly after such a transparent signal from bulls with weekly shut. Essentially, the cryptocurrency is powerful, scarce, and provide is simply diminishing. Technicals are bullish, and even the information cycle has turned optimistic for BTC with the approval of the primary ever ETF.
The double high narrative may drive costs decrease | Supply: BTCUSD on TradingView.com
Bulls aren’t but out of the woods till a brand new all-time excessive is made after which some. The goal of a double high sample would carry Bitcoin worth again to $14,000 and will nonetheless preserve an general bullish Elliott Wave rely. The accompanying narrative can be highly effective for bears, however not fairly a bear market.
A extra logical Elliott Wave setup would preserve the main cryptocurrency by market cap trending greater from right here, but it surely finally being the final leg up earlier than a bear market arrives.
When wave 5 ends, a brand new bear market will start | Supply: BTCUSD on TradingView.com
Elliott Wave Idea means that markets transfer up within the major path in 5 complete waves, that are then sub-divided additional into impulse waves and corrective waves. When the five-wave uptrend ends, a three-wave bear market follows. Value typically then retraces again to the between wave three and wave 4 of the bull market.
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Mapping EWT over the Bitcoin worth chart above, the sample suits the chart and every time certain sufficient, BTC fell again to between wave three and 4. The ultimate situation has a a lot nastier destiny for our favourite cryptocurrency, and it entails retracing the complete 2020-2021 bull run.
The longer bullish supercycle may be ending | Supply: BTCUSD on TradingView.com
With the best way an ending wave 5 retraces again to between a wave three and 4, if the bigger Bitcoin worth cyclical pattern have been to finish, a bigger correction of the first pattern ought to be anticipated.
The distinction would counsel a false backside at $50,000 that ultimately gave out to $20,000. Which is strictly why Elliott Wave Idea factors to the worst bear market file when this bull run is lastly completed.