Bitcoin worth is again at ranges from earlier within the yr, however has but to set a brand new all-time excessive. Last evening’s weekly candle shut nonetheless got here with a brand new damaged file for worth: the very best weekly candle shut within the cryptocurrency’s historical past.
Will the bullish weekly shut lead to new highs? If so, will this be the end result of the bull run? And if not, does that imply a bear market as a substitute?
A brand new file has been set | Source: BTCUSD on TradingView.com
Bitcoin Price Sets New Record For Highest Weekly Close Ever
According to TradingView’s BTCUSD Index, the weekly Bitcoin worth chart had a record-breaking weekly shut at roughly $61,528. The quantity stays round $4,000 wanting the cryptocurrency’s present all-time excessive, nonetheless, with new information being set, are new highs a given?
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It is tough to think about a situation the place Bitcoin had been to fails to transfer greater from right here, particularly after such a transparent signal from bulls with weekly shut. Fundamentally, the cryptocurrency is robust, scarce, and provide is solely diminishing. Technicals are bullish, and even the information cycle has turned optimistic for BTC with the approval of the primary ever ETF.
The double prime narrative might drive costs decrease | Source: BTCUSD on TradingView.com
Bulls aren’t but out of the woods till a brand new all-time excessive is made after which some. The goal of a double prime sample would deliver Bitcoin worth again to $14,000 and will nonetheless preserve an general bullish Elliott Wave depend. The accompanying narrative can be highly effective for bears, however not fairly a bear market.
A extra logical Elliott Wave setup would preserve the main cryptocurrency by market cap trending greater from right here, however it finally being the final leg up earlier than a bear market arrives.
When wave 5 ends, a brand new bear market will start | Source: BTCUSD on TradingView.com
Elliott Wave Theory means that markets transfer up within the major route in 5 whole waves, which are then sub-divided additional into impulse waves and corrective waves. When the five-wave uptrend ends, a three-wave bear market follows. Price usually then retraces again to the between wave three and wave 4 of the bull market.
Related Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone”
Mapping EWT over the Bitcoin worth chart above, the sample suits the chart and every time positive sufficient, BTC fell again to between wave three and 4. The last situation has a a lot nastier destiny for our favourite cryptocurrency, and it entails retracing your entire 2020-2021 bull run.
The longer bullish supercycle is also ending | Source: BTCUSD on TradingView.com
With the way in which an ending wave 5 retraces again to between a wave three and 4, if the bigger Bitcoin worth cyclical development had been to finish, a bigger correction of the first development must be anticipated.
The distinction would counsel a false backside at $50,000 that ultimately gave out to $20,000. Which is precisely why Elliott Wave Theory factors to the worst bear market file when this bull run is lastly completed.
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Featured picture from iStockPhoto, Charts from TradingView.com