Elliott Wave view on Bitcoin (BTCUSD) suggests the rally from December 18, 2019 low is unfolding as a 5 waves impulse Elliott Wave structure. In the 1 hour chart below, we can see wave ((iii)) of the impulse ended at 8463.57. Pullback in wave ((iv)) ended at 7667 as a double zigzag Elliott Wave structure. Bitcoin has resumed higher in wave ((v)) which subdivides in 5 waves of lesser degree.
Up from 7667, wave (i) ended at 8252.72 and pullback in wave (ii) ended at 7960. Wave (iii) is proposed complete at 8895 and while pullback stays above 7667, it has scope to extend higher 1 more time to end wave (v). This move should also end wave ((v)) and the entire rally from December 18, 2019 low. Afterwards, Bitcoin should pullback in wave 2 to correct rally from December 18 low in larger degree 3, 7, or 11 swing before the rally resumes.
Near term, it is risky to chase the upside at this stage due to the possibility that the crypto currency is near completion of the 5 waves move higher from December 18, 2019. However, as the rally is impulsive, it’s also equally risky to try fading the 5 waves move higher. Another more bullish alternate count is a nest in which Bitcoin is still within an extended wave ((iii)).
BTCUSD (Bitcoin) 1 Hour Elliott Wave Chart
