Bitcoin Price Forecast Calls For Chance Of Black Thursday Redux
28 Août 2021 - 1:00AM
NEWSBTC
Bitcoin price is making another attempt at the time of this
publication to take back $50,000 and hold. With the Ichimoku
indicator turned on, the leading cryptocurrency by market cap is
also trying to hold above the cloud. Losing the cloud under similar
circumstances the last time around, resulted in one of the nastiest
selloffs on record with Black Thursday in March 2020. Could such
chaos be in the forecast for crypto? Holding Above Cloud Could
Prevent Black Thursday Repeat Until either Bitcoin sets a lower
low, or blasts cleanly above $50,000 and makes a crack at its
current all-time high, debate will rage on regarding if the bull
market will continue or if a bear phase has begun. Related Reading
| Total Crypto Market Cap Reenters Monthly RSI Bull Zone Currently,
there’s a battle breaking out between bulls and bears, and while at
first glance it would seem $50,000 is the prize, price action is
trying to hold above the Ichimoku cloud – also called the Kumo – on
the three-day timeframe. Bitcoin losing the cloud could cause a
deeper correction | Source: BTCUSD on TradingView.com In an attempt
to use the cloud from the past to forecast the future, losing the
cloud on the timeframe could result in a similar style collapse as
Black Thursday. A red cloud represents bearish strength in the
market, so although Bitcoin is rising, bears might still have the
upper hand. A Theory On Where The Bitcoin Correction Will End If
such a fall happens, the lower low doesn’t necessarily mean a
downtrend has started. The pure definition of a downtrend is a
series of lower lows and lower highs, which will be what happens in
Bitcoin if the top cryptocurrency reverses here. Even Black
Thursday itself was a buy signal, marking the completion of an ABC
correction. According to Elliott Wave Theory, following each
impulse wave, a corrective wave follows. Another ABC correction
would result in a lower low | Source: BTCUSD on TradingView.com In
an ABC correction, the C-wave is always lower than the A-wave.
Adding credence to the idea, both rallies on the way up saw similar
sub-division. There is no guarantee that a C-wave will arrive.
Also, impulse waves move in the primary direction of the trend, and
the current corrective wave could be a wave-four in a larger
formation making any downside relatively moot. Related Reading |
Proof-of-Work: Bitcoin Back Programs That Put Your Money To Work
For You The larger formation suggests one final wave five up before
the bull market is over, and the wave five will be one to remember.
When it is all said and done, if the formation is valid, Bitcoin
could see its worst bear market ever to follow. Similar thoughts on
#bitcoin – potential ending diagonal. pic.twitter.com/HYyBIEGyxN —
Tony "The Bull" Spilotro (@tonyspilotroBTC) August 7, 2021 Follow
@TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram.
Content is educational and should not be considered
investment advice. Featured image from iStockPhoto, Charts from
TradingView.com
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