Table of Contents
In our previous Bitcoin analysis Why Is Bitcoin Ranging/Bearish So Much? Here Is What No One Is Saying we talked about the larger picture for BTC and how the cryptocurrency was still in a bull market.
However, right now we are in a bullish retracement that as lasted for months now. But once this retracement is over, there is a very high probability that we might see the BTC price resume it move higher.
And this bullish rally resumption for Bitcoin might play out exactly like the image shown below.
The questions traders are asking now is:
- What kind of retarcement are we expecting to play out? and
- When should we expect it to be over?
We will be covering these questions and more in this Bitcoin analysis.
To trade BTC/ETH with leverage, sign-up to Bybit right now! Bybit’s BIGGEST Deposit Bonus Campaign is now live! First-time depositors can get up to a $4,100 Bonus when you sign-up and fund your Bybit account with our Bybit link.
Understanding The Bitcoin Retracement Phase
The Bitcoin retracement phase has been under way for more than 10 months now. And with the current price action we are seeing playing out, there are only two key retracement patterns that might be forming.
These patterns are:
- The Flat Pattern (our pattern of choice)
- The Coverging Triangle Pattern
In this Bitcoin analysis we will be breaking down the Flat pattern. This pattern is the most obvious for Bitcoin and has a very high probability of playing out.
The Bitcoin Flat Pattern
The flat pattern is our initial goto retracement pattern of choice for Bitcoin. This retecement pattern is well known among professional traders and it helps us better understand what exactly is going on in the Bitcoin Daily timeframe
There are 3 types of flat patterns, and we believe Bitcoin might be forming the Irregular/Expanded varient of the pattern.
When we relate the image of a typical Expanded Flat pattern example with what the Bitcoin price is currently doing, we can clearly see the wave A and B leg of the pattern already completed.
Howerver, the wave C leg is still not completed yet. This means there is a very high probability for the Bitcoin sell-off to intensify in the coming weeks as the price attempts to complet that C wave leg down.
What Should We Expect Next?
The flat pattern is coming to its final stage of retracement, once completed we expect the Bitcoin bearish market to come to an end and for the bullish rally to resume!
What we are expecting to happen in the coming days is for the C leg of the pattern to complete. This would mean the Bitcoin price has to make a last leg lower before price finds support and begins reversing back up to new highs.
So in the coming weeks we expect to see the Bitcoin price remain bearish as it makes a new low for that C wave leg for the pattern.
Once this C wave leg is completed we have our confirmation that the Bitcoin sell-off might finally be over and we should be getting ready for a move higher soon!
Easy Steps From Beginner To Pro Crypto Trader
You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders who wants to get familiar with the basics of Bitcoin trading. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting
