Bitcoin Elliott Wave Update – A Major Decision Point Ahead for BTC

Summary

In this Bitcoin update, the market is still in a consolidation and correction phase following the sell-off from November 21st. The resistance around the 38.2% retracement level at $92,588 is proving strong, with marginally higher highs suggesting a potential wave four bounce. While the market shows no impulsive rejection yet, the corrective price action could extend into the new year. The video also discusses micro patterns, possible wave structures, and short-term support and resistance levels, emphasizing the uncertainty of the market but providing strategies for trading within the corrective range.

Takeaways

• 😀 Bitcoin is currently in a consolidation phase, which began on November 21st after a significant selloff.
• 📉 Despite the market's movement into a resistance zone, there is no clear evidence yet of a bullish trend emerging.
• 🔄 The market is facing resistance, particularly around the 38.2 retracement level at $92,588, which is proving strong.
• 🌀 The current price action is characterized by marginally higher highs, but there’s a loss of momentum with each attempt to push higher.
• ⏳ There's a possibility that this correction could stretch into the new year, as fourth-wave corrections can sometimes last over the holiday season.
• 💡 A more bullish scenario is still considered potential, with the possibility of a five-wave upward structure, but this remains uncertain until resistance is broken.
• 🔽 For now, the market is largely within a wave four correction phase, and there is no evidence yet to suggest it has finished.
• 🔎 A potential change in wave labeling is being considered for Bitcoin's micro patterns, but no adjustments have been made yet.
• 🛑 There is still a chance of a C-wave decline in the near term, which could provide a better reward-to-risk ratio for long trades, but still within a corrective pattern.
• ⚠️ The current market remains choppy and corrective, with traders advised to be cautious as the price action lacks clear direction and reliable setups.

Q & A

What is the current market phase for Bitcoin as described in the script?

Bitcoin is currently in a consolidation or correction phase that began on November 21st, following a significant selloff.

What resistance area is mentioned in the script for Bitcoin?

The resistance area mentioned in the script is around the 38.2% retracement level at $92,588, which has been particularly strong and limiting upward movement.

Why is the author treating the current market action as a wave four bounce?

The author believes the market is experiencing a wave four bounce because the price action has not shown signs of impulsive movement, and each high is losing momentum. The market is still struggling to push higher.

How does the author view the possibility of a bullish scenario for Bitcoin?

The author acknowledges a potential bullish scenario, where Bitcoin could complete a five-wave move or an ABC structure, but this is considered a potential outcome, and there is currently no evidence of a trend reversal or upward breakout.

What does the author expect regarding the continuation of Bitcoin's correction phase?

The author suggests that the correction phase might extend into the new year, as wave four corrections often take longer during the holiday season.

What is the difference between the WXY and ABC patterns as explained in the script?

The WXY pattern is used to describe a three-wave move followed by a corrective wave structure, while the ABC pattern is a typical corrective structure. The author has considered both, but believes the WXY pattern remains more appropriate for the current situation.

What micro resistance area is highlighted in the script?

The micro resistance area is between $9,590 and $91,916. If Bitcoin's price breaks above $91,916, it could signal a deeper corrective pattern, and the market's outlook would worsen.

What does the author expect for the C-wave in the current corrective structure?

The author expects the C-wave to form five waves as part of the correction, and this could present a potential long trade setup with a favorable risk-to-reward ratio if the pattern completes.

What is the overall sentiment regarding trading in the current Bitcoin market?

The sentiment is cautious, as the market is in a corrective phase, and trading within this range is risky. The author advises against trading with the main trend and highlights the choppy price action.

How does the author suggest monitoring the market for potential trading opportunities?

The author suggests monitoring the completion of wave patterns, particularly a completed five-wave move in the C-wave, which could provide a good risk-to-reward ratio for long trades, but within the larger wave four correction.