The Bitcoin (BTC) price is likely to complete wave four of a five-wave bullish impulse. After the correction is complete, a significant price rally is expected, moving towards the targets given below.

The most likely count is that BTC is completing a complex W-X-Y correction (shown in blue below), currently trading in the Y wave.

The Y wave is taking place in a flat A-B-C (orange), currently in the C wave.

The three most likely targets for the C wave to end would be at $13,166, $12,922 and $12,615: the 1, 1.27, and 1.61 Fib levels (orange fib) of wave A.

Using an external retracement on wave B gives us targets of $12,949 and $12,648 (red fib), coinciding with the latter two targets.

Therefore, the two most likely targets would be where there is a confluence of fib levels, between $12,900 – $12,950 and $12,600 – $12,650.

The C wave is an impulse, so the price is likely in wave three of a five-wave formation (shown in black below). The target for the bottom of the move will become clearer once the impulse continues developing.

Cryptocurrency trader @CryptoTony_ outlined a possible wave count for BTC, in which the price is completing wave four inside a symmetrical triangle and will soon break out.

The alternative count suggests that the price is trading inside a symmetrical triangle instead. This is valid since a triangle can create a wave 4, currently seen in the BTC chart.

If the count is correct, the price will complete the E wave (black) near the ascending support line at $13,400, before eventually breaking out.

A fall below the C wave at $13,195 would invalidate the triangle scenario, indicating that the correct count is the complex correction from the previous section.

On the other hand, a rally above the D high at $14,083 would suggest that the BTC trend is bullish.

As for the future movement, it’s likely that the previous correction is a part of a longer-term wave 4 (orange, highlighted), in an impulse that began on Sept 7.

After the move is complete, wave five would likely end between $16,100 and $16,1300. These targets are found by using the Fib extensions of waves one and three.

Over the longer-term, the main resistance area seems to be between $16,100 – $17,300, the 0.786 – 0.854 Fib levels of the entire previous decline, beginning from the Dec 2017 all time high.

Using Fib extensions from long-term waves 1 and 3 (white) gives targets between $16,800 – $17,100 (white fib), relatively close to the two targets given previously.

Therefore, once the current correction is completed, BTC should rally to somewhere between $16,000 – $17,000.

To conclude, the Bitcoin price is likely to complete its correction below $13,000, before beginning an upward move that would take the price above $16,000.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

The post Analyzing Bitcoin’s Short and Long-Term Elliot Wave Count appeared first on BeInCrypto.

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