- The current deep corrective period of BTC according to Elliott Wave analysis may result in a prolonged price decrease.
- The next significant Bitcoin movement will be influenced by the two critical Fibonacci retracement regions which span between $72,800 and $62,500-$64,000.
- The bearish forecast will become invalid if BTC maintains support above $78,500 while breaking through the $90,000 level it will establish new upward momentum.
The Bitcoin market value currently stands at $84,206.34 showing a 0.4% upward trend.Bitcoin has maintained prices between $83,694.16 and $84,504.31 throughout the 24-hour period.
The Bitcoin market shows small bullish momentum but an Elliott Wave analysis indicates it has just started a major correction phase. The market may be in the middle of a Wave 2 correction which could cause a prolonged price drop until its general upward direction becomes strong again.
Elliott Wave Signals Bearish Correction
The Elliott Wave chart presents bearish count patterns by showing that the market finished Wave 1 with an impulse structure and now enters Wave 2 that typically requires deep corrections. An ascending price action channel exists while recent price movements show support decreasing toward the bottom trendline.
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Analysis of market support areas heavily depends on Fibonacci retracement levels because these zones provide potential support points during price movements. A minor recovery scenario exists at the 23.6% retracement point which stands at approximately $78,500. Buyers have a higher probability to enter at the ~$72,800 support level which corresponds to the 38.2% Fibonacci retracement point.
Throughout strong uptrends the 61.8% retracement level between $62,500-$64,000 maintains its position as a fundamental support area. An extended bear market may occur if Bitcoin’s correction reaches the 78.6% zone that spans between $52,200 and $54,000. A failure to hold above the 61.8% retracement level can validate a bearish Wave 2 scenario leading to possible Bitcoin price drops below $50,000 during 4-6 months.
Market Implications and Future Outlook
The bearish analysis shows Bitcoin likely needs to stay within an extended consolidation area before starting its positive price trend again. A price fall under $72,000 will initiate a more profound correction while $62,000-$64,000 establishes the vital area for traders to make their decisions.
The bearish perspective for Bitcoin would become invalid if the price maintains positions above $78,500 while exceeding $90,000 which would confirm persistent bullish trends.The Wave 2 correction may deliver entry points for prolonged investors buying opportunities
