Bitcoin Price Analysis: Elliott Wave Theory suggests price could fall further

Bitcoin is trading over 1% lower today as senitment in the crptosphere is weak.
Elliott Wave theory suggests we could still be in the 3rd wave lower, which could mean more pain.

BTC/USD 4-hour chart

So if you are not familiar with Elliott Wave the chart below can seem confusing. Here is a link that could help you understand what is going on (https://www.fxstreet.com/technical-analysis/elliott-wave)

Going back to the chart now, the price is still in a 5 wave low pattern but it is important to work out which wave the pair is currently in. The wave 1-2 is now set, this can often help you determine where wave 3 will end up as we can use Fib projection (blue). The Fib projection for waves 1-2 is telling us that the price has gone past the 261.8% projection so this could easily be wave 3 at the moment.

Wave 3 usually subdivides into smaller waves. This is also a 5 wave pattern lower following the rules of Fibonacci. I have marked these waves in red as it will be easier to follow. The wave pattern down in red might not be over. At the moment we are at the red 161.8 Fib extension. In theory, this can reach 261.8% so there could be another leg lower.

That is not to say there will not be some small retracements in the meantime. As you can see from the chart these Fib waves are pretty accurate and offered some great counter-trend trade opportunities. Having said that catching the waves in the direction of the prevailing trend is the best strategy.

Additional levels

BTC/USD

Overview
Today last price	7781.17
Today Daily Change	-108.69
Today Daily Change %	-1.38
Today daily open	7889.86

Trends
Daily SMA20	8933.78
Daily SMA50	9259.56
Daily SMA100	8420.77
Daily SMA200	8679.69

Levels
Previous Daily High	8155.61
Previous Daily Low	7735.73
Previous Weekly High	9180.49
Previous Weekly Low	8405.51
Previous Monthly High	10511.86
Previous Monthly Low	8431.17
Daily Fibonacci 38.2%	7896.12
Daily Fibonacci 61.8%	7995.22
Daily Pivot Point S1	7698.52
Daily Pivot Point S2	7507.18
Daily Pivot Point S3	7278.64
Daily Pivot Point R1	8118.4
Daily Pivot Point R2	8346.95
Daily Pivot Point R3	8538.29

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