Bitcoin’s (BTC) price has experienced a clear 5-wave downward move, signaling the completion of an impulsive wave, according to technical analysis by MoreCryptoOnline.
This development, grounded in Elliott Wave Theory, sets the stage for the next move in Bitcoin’s price action, with two potential scenarios being considered. The focus now turns to whether Bitcoin’s price will see a brief recovery or continue its downward trajectory toward $45,000.
Key Resistance Levels for the Upcoming Correction
After the completion of the 5th wave at around $62,600, Bitcoin’s price is expected to enter a corrective phase, identified as wave (B) or (2). This phase represents a retracement of the downward impulse, with the resistance zone estimated to be between $64,040 and $65,650.
This range, according to MoreCryptoOnline, could act as a reversal point, where Bitcoin may face selling pressure and begin another leg down. However, the type of correction will determine the next move for the cryptocurrency. Traders will be closely watching this resistance zone to gauge the strength of the upcoming correction.
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Show more +White Scenario: Potential for a Wider B-Wave Correction
The white scenario outlined by MoreCryptoOnline suggests that Bitcoin’s price could enter a wider B-wave correction. In this case, the price may recover slightly or move sideways within the resistance range before another downward move. This scenario implies a short-term price rebound but does not signal the end of the broader corrective trend.
The move toward $64,040 to $65,650 may offer a temporary rally, but the overall market sentiment remains bearish, and a continuation of the downward trend is expected once the correction is complete.
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Yellow Scenario: Deeper Drop to $45,000
The yellow scenario presents a more bearish outlook. In the corrective phase, Bitcoin’s price may drop lower, maybe reaching $45,000, if it is unable to break above the resistance zone.
The market’s response to the impending correction will determine how this situation plays out, and if resistance is not broken, there will probably be a more vigorous selloff.
Finally, a decrease to $45,000 would signal a key reduction from current levels and indicate that the market’s overall slump is still ongoing. This situation is been watched by traders and experts because it has the potential to influence the direction of Bitcoin in the upcoming months.
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