At the moment, everyone who actively monitors the cryptocurrency market and events on it, note a sharp turn in prices in the direction of growth. And since most of the major digital assets move in sync, we can observe this growth among the entire top twenty currencies (speaking of the CoinMarketCup rating).
Today we will again look at the graph of the main driving force of the Bitcoin market, because it is the Bitcoin trend that still determines its direction. This time for technical analysis we used wave analysis, a tool also known as “Eliot Waves.” According to the works of Ralph Eliot, the price movement in the market occurs in pulses (waves) and has a certain regularity. Thus, the trend movement occurs in five waves, of which three are in the direction of the trend (marked in red in the graph), and two, as a correction, against it (yellow). It is also observed that the 3rd wave is longer and stronger than the others, and the slope of the trend gradually decreases.
Consequently, relying on this market pricing model, at the moment the price is in the correction stage, which passes through 3 waves. The graph clearly shows 2 waves and the beginning of the final one. We believe that the correction stage, and, consequently, the short-term price increase may end at 4460, which is an important resistance level, and also coincides with the level of 61.8, if we analyze the situation using Fibonacci levels.
In sum, these three tools tell us about the imminent price reversal and the continuation of the downward trend. We can only wait for the confirmation of this theory from the main judge of the market price.