Bitcoin price bound for further losses despite brief rebound
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Bitcoin Price is hovering above the 23.6% Fibonacci level.
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BTC price has a strong Fibonacci target at $22,665
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A 5-wave impulse towards $70,000 would invalidate this thesis.
Bitcoin price and many other digital currencies have been consolidating in what appears to be a triangle formation over the last several months.
Bitcoin price has serious downside potential
According to the Elliott Wave theory, triangles can never appear in wave two consolidations, and most commonly only in the fourth wave position. The unfolding triangle for Bitcoin price would suggest that “The King” has one more high to make before he is ultimately crowned and crashed.
There is, however, one questionable caveat to the unfolding triangle formation. The Fibonacci retracement levels from the $3,850 2020 low into November’s all-time high of $69,000 says the current price action is only a 23.6% Fibonacci level. Unfortunately, the 23.6% Fibonacci level is considered a very weak supportive ratio amongst Fibonacci analysts.
BTC/USD 4Day-Chart
Shallow fourth waves (triangles and bullish pennants) usually respond like magnets to the 38.2% Fibonacci level. The 38.2% fib level is currently at $22,665, 43% below the current Bitcoin price.
The Fibonacci retracements tool forecasts a rather concerning scenario for Crypto enthusiasts. However, it should be noted that there are still alternate scenarios such as a triangle and or bullish pennant for the Bitcoin price to form.
Time will be the truth-teller for the first Peer to Peer digital currency. A bullish five-wave impulse from the current price action will be the first invalidation of this thesis, as triangles can only unfold in 3 swings. Should this happen, the Bitcoin price can either experience a truncated wave five into $70,000 or an extended wave five, which could go high as $124,000, over 250% above the current Bitcoin price.
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