Wave CountSince reached the aforementioned high of $13,764, the Bitcoin price has been on an extended correction. Based on its price movement, we believe this is a 3-3-5 correction — which has transpired throughout two A-B-C waves (the 3-3- part of the correction) and is currently finishing its final downward move, which is transpiring in five waves. It looks as if the Bitcoin price is in the fifth and final wave. Judging by the chart, BTC should make a bottom around $7000, inside the minor support area that coincides with the descending support line. Afterward, the price is likely to break out. If it does, the closest resistance area is found near $9500. Furthermore, if the breakout occurs in November, the resistance area is likely to coincide with the 100-day moving average (white). This is because the moving average is moving downward, and is likely to reach the resistance area until then. Therefore, we agree with the hypothesis laid out by @cryptomichNL that the Bitcoin price is likely to consolidate until the end of the month. However, we believe it will make a slightly lower low of $7000 before it eventually breaks out and heads for the aforementioned resistance areas. Do you think Bitcoin will break out in November? If not, when? Drop your thoughts in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of Shutterstock, TradingView.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.