BTC/USD: Advanced Elliott Wave Analysis 1D (Jul. 28)

X Force Global Analysis:


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In this analysis, we analyze Bitcoin's daily chart through Elliott Wave theories.

Bullish Evidence

- Before a breakout taking place, Bitcoin had been consolidating in a descending wedge pattern
- Using Elliott Wave counts, this was a Triple Combo Wave (WXYXZ), also known as a triple three
- After breakout out, Bitcoin started its bullish rally in Impulse Wave counts (12345)
- As the bullish momentum has decreased, it seems as though wave 3 has played out, as Bitcoin gets ready for a corrective wave
- Based on Fibonacci retracement levels, a retrace to the 0.382 Fibonacci support at 10.5k is probable before the final impulse wave up to the 1.618 Fibonacci resistance near 12k.
- All technicals currently demonstrate that Bitcoin is overbought
- The Relative Strength Index (RSI) remains at overbought territories
- The Stochastic oscillator also shows that Bitcoin is overbought
- Prices have skyrocketed through the upper Bollinger band.

Market Sentiment:

Long short ratios are at 66 to 34, still with significantly more longs than shorts. While the market looks for a small correction, the overall market sentiment remains bullish.

What We Believe

We believe that a corrective wave will be in play very soon, as many technical indicators point towards Bitcoin being overbought. However, at the same time, there is a high probability of another impulse wave playing out, leading to test 12k regions.

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