Bitcoin continues to be a subject of intense scrutiny and analysis.
BTC is believed to be in the C wave of wave 5, a part of an ending diagonal pattern, as per Elliott Wave Theory. This pattern is typically a precursor to a significant price movement. As it stands, the current wave count remains valid as long as Bitcoin’s price stays below the 29,780 level. Should the price exceed this level, it would necessitate a re-evaluation of the wave count and market expectations.
The market is keeping a close eye on a potential target of around 28.3K for Bitcoin. This figure is based on Fibonacci extensions, a popular tool among traders for identifying potential levels of support and resistance. It’s important to note that any further drop in price brings Bitcoin closer to the completion of this correction. With each new low, the likelihood of this correction concluding increases.
The third wave in the C wave has already met expectations by reaching the 1.618 extension at 28,790. This is a significant milestone, as the third wave is often the largest and most powerful wave in the Elliott Wave Theory.
Top Trader Warns About a Potential Breakdown
Renowned cryptocurrency analyst, Crypto Tony, recently shared his insights on the current Bitcoin (BTC) market situation via his Twitter handle, @CryptoTony__. He provided an update on his stance regarding the potential future movements of Bitcoin against the US Dollar (USD).
Crypto Tony stated, “I remain in my current stance and won’t look to short unless we lose $29,000 and stay below that level. For now, we are hovering above and the breakdown seems imminent in my eyes.”
A “breakdown” refers to a situation where the price of a cryptocurrency falls below a certain support level and continues to decline.
This statement suggests that Crypto Tony is closely monitoring the $29,000 level for Bitcoin. He indicates that he will not consider a short position unless Bitcoin’s price falls below this critical threshold and remains there. Currently, Bitcoin is hovering above this level, which, in his view, suggests a potential downward trend in the near future.
Crypto Tony’s comments reflect a cautious approach, highlighting the importance of the $29,000 level as a key support point for Bitcoin. If this level is breached, it could signal a bearish trend, leading to a potential shorting opportunity. However, as long as Bitcoin maintains its position above this level, the analyst seems to suggest that it’s not the right time to enter a short position.
It’s worth noting that Crypto Tony’s analysis is based on current market conditions, which are subject to change. As with any investment, potential investors should conduct their own research and consider multiple viewpoints before making any decisions.
Prominent cryptocurrency analyst, Rekt Capital, recently took to Twitter to share his perspective on the current Bitcoin (BTC) market dynamics. In his tweet, he noted that Bitcoin is currently in what he refers to as “Candle 3”, with “Candle 4” and “Candle 1” yet to come, and suggests $29.2k as the nearest support level.
Another crypto enthusiast, CryptoAM17, also shared his viewpoint on the situation. He tweeted an update on his plans regarding Bitcoin’s price movements.
He stated, “As long as #btc is below 29.2k, more downside to come in my opinion. 1st TP (Take Profit) 28.8k, 2nd TP 28.2k.”
This statement suggests that CryptoAM17 is closely watching the $29.2k level for Bitcoin. He believes that if Bitcoin remains below this level, there is a potential for further price decline. He has also set his take profit levels at $28.8k and $28.2k, indicating the price points at which he plans to sell his Bitcoin holdings to secure profits.
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