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Bitcoin (BTC) has been declining since April 24 but rebounded strongly in support on May 19.
While the exact number of waves is not certain, both bullish and bearish numbers suggest that a short-term increase will occur.
Wave four
Bitcoin has been declining since April 14, when it hit a record price of $ 64,895. On May 26, it fell to a low of $ 30,000 in five months.
Both bearish and bullish numbers suggest that BTC is currently in the fourth wave of a bullish impulse (red). This model has been in place since December 2018. Long-term indicators provide very similar readings in waves two and four.
However, the bearish count indicates that another dip to at least $ 27,195 will occur, potentially completing a fourth wave pullback. On the other hand, the bullish (white) count suggests that wave four will turn into a symmetrical triangle.
For the previous analysis of the number of waves, click here.
Bearish BTC Account
Cryptocurrency trader @TheTradingHubb described a potential number of waves for BTC, which shows the price rising towards the mid-$ 40,000 mark.
Since the initial movement following the May 19 lows is a three-wave structure (highlighted in green), it will likely be wave A.
Therefore, the whole move could be a flat correction, eventually taking BTC to $ 44,050. This is the resistance line of an ascending parallel channel and would give the A: C waves a 1: 1 ratio.
In the long term, the move would complete the fourth wave (orange) and a fourth wave pullback. The $ 44,000 region is also the 0.5 Fib retracement resistance level and the midpoint of the descending parallel channel. For this reason, it is likely to act as a resistance.
An increase above the Wave 1 low (red line) to $ 47,000 would invalidate this count and indicate that the bullish count is in play.
Bullish BTC Account
Interestingly, the bullish count also follows an ABC structure. However, in this case it would go over the $ 47,000 line and go above $ 48,000.
The story continues
This would create wave B of a long-term symmetrical triangle, which would likely confirm a long period of consolidation.
Either way, both numbers suggest that a move towards at least $ 44,000 is expected.
For the previous bitcoin (BTC) analysis from BeInCryptos, click here.
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