Bitcoin: pay me now or pay me later

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At the end of June, we discovered using the Elliott Wave Principle (EWP) that (BTC) had created a near-perfect Fibonacci-based impulse pattern, and we were looking for a correction for:

be ongoing, ideally targeting $27,750-29,000. But corrections can also move more over time than price, and we can see the blue support zone ($29,000+/-500) holding.

The cryptocurrency has traded over the past eighteen days, and since mid-June, between $29.5K and $31.5K. See Figure 1 below. So, indeed, as noted, the correction may also move more over time than the price. Since the corrections are either a zigzag, triangle, or flat, the question is what’s next?

Figure 1

BTC Daily Candlestick Chart

BTC rallied strongly last Thursday, only to erase all those gains a day later. This smells, according to the EWP olfactory test, like a B wave, as shown in Figure 1 above. This means that the red W-ii most likely becomes an uneven dish.

The alternative is shown in Figure 2 below, where the crypto is already in a (green) W-1, 2 pattern. But for this pattern to hold, BTC cannot drop below the floor level (pink ) to $29,613 and it will need to more directly exceed $31.5,000.

Figure 2

Anyway, thanks to the EWP, we know that even if the irregular flat first targets the (slightly) lower prices, it will be followed by another higher impulse targeting >$42,000, with a first pit stop ideally around $33,500 +/- $500. So, for now, we can let BTC decide how it wants to fill in the short term, while keeping an eye on higher prices in the longer term.

The cryptocurrency will need to drop below the June low, with an early warning for bulls below the lower end of support ($28.5,000) to negate our overall bullish thesis.

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