Bitcoin’s weekly chart is at a crucial crossroads, with price action floating around significant structural levels. Traders are now debating whether the current movement signifies the onset of a more extensive correction or merely a healthy consolidation phase before the next upward movement.
Elliott Wave Signals Align With Developing Correction
Elliott Waves Academy, in its latest evaluation monitoring Bitcoin’s anticipated wave trajectory on the weekly timeframe, poses an important question: has the corrective wave commenced? The recent market structure suggests that the bullish segment has likely concluded, and the price may now be entering a corrective phase. A vital support level from the previous upward wave has been breached, indicating a potential wave reversal underway.
The case for this transition becomes more compelling when examining the break below the lower boundary of the diagonal pattern and the concluding price channel. Both structures previously functioned as robust supports during Bitcoin’s rapid ascent, and their breakdown now signals a gradual shift of market control from buyers to sellers.
Presently, Bitcoin is trading below the lower boundary of the price channel, which has turned into a critical resistance zone. As long as the price stays beneath this area, bearish sentiment may remain, leading the market to a cautious stance.
Despite the prevailing weakness, signs indicate that the downward sub-wave may be approaching completion. The structure hints that a short-term upward corrective wave could emerge as the market seeks to stabilize and regain composure.
Expected Outlooks
Expressing their forecasts, Elliott Waves Academy mentioned that Bitcoin might continue to consolidate around its current levels as bulls strive to maintain their positions. This phase of sideways movement often represents a period of indecision in the market, where both buyers and sellers await confirmation before taking their next significant actions.
However, the Academy warned that if indications of weakness start to appear near the current resistance zone, the market could encounter a potential reversal. This shift might lead to renewed bearish pressure, pushing Bitcoin into a more profound corrective phase.
According to the analysis, the correction could extend towards the 50%–61.8% Fibonacci retracement levels of the preceding upward wave. These Fibonacci areas often play a crucial role as support during corrective movements, and a decline into these ranges could create a more solid foundation for a future bullish reversal.
Ultimately, observing price behavior around these essential levels in the coming days will be vital. Whether the market maintains its consolidation or drifts into a deeper retracement, the imminent movements in these zones could set the tone for the next chapter of Bitcoin’s long-term wave cycle.
