- Bitcoin sees its price hovering beyond the 23.6% FIB level.
- The currency has a massive FIB aim at $22,665.
- A five-wave impulse to $70K would cancel the plunging narrative.
Bitcoin and many crypto tokens have consolidated in that seem to be a triangle set up within the past several months. Nevertheless, most cryptocurrencies appear to extend their downside mode as markets lack positive developments.
BTC Exhibits Massive Downward Potential
The Elliot Wave theory dictates that triangles never emerge in wave-2 consolidations and are common in the 4th wave position. The developing triangle for BTC price may indicate that the dominant crypto has a single peak to print before the downside emerges.
However, there’s one questionable warning about the unfolding triangle setup. FIB retracement zones from 2020’s low of $30,850 to 2021’s ATH of $69K suggests the prevailing price function is a 23.6% FIB zone. Unfortunately, 23.6% FIB is considered a weak supportive ratio among FIB analysis.
BTC/USD 4-Day Timeframe
Meanwhile, shallow 4th waves (bullish and triangles pennants) are magnetic to the 38.2% FIB zone. For now, the 38.2% Fibonacci zone stands at $22,665, roughly 43% beneath the current BTC price. Meanwhile, the FIB retracement tool predicts a concerning case for cryptocurrency fans. Nevertheless, investors should beware of alternate scenarios like a bullish pennant or triangle for BTC price to print.
Meanwhile, time will reveal everything about BTC’s future price movements. A bullish 5-wave impulse from BTC’s current price will be the initial nullification of the highlighted view. Remember, triangles only emerge in three swings. If that occurs, BTC will either witness a truncated wave-5 towards $70K or a continuous wave5 that might go towards the $124,000 highs, more than 250% beyond Bitcoin’s current price.
For now, Bitcoin stays up following a brief rebound, trading around $39,628.03 at this publication. Nevertheless, the crypto is bound for more declines, massive FIB target staying at $22,665.
Market players should prepare for more pain. However, a five-wave impulse to $70K would nullify the bearish thesis. It might be intriguing to watch upcoming price reactions.
What are your thoughts about this BTC’s bearish narrative? Will the currency escape the fall? You can comment below.