Overview of Current Market Structure
The chart presents a harmonic pattern and Elliott Wave theory integration, showcasing key technical indicators for Bitcoin's price action over the next few days. Based on the structure, Bitcoin ($BTC USD) is currently trading at $62,175.77 and appears to be completing a corrective wave pattern within a larger bullish outlook. Several harmonic patterns and Fibonacci retracement levels provide additional clues about the next possible moves.
Harmonic Pattern and Key Levels
The price action has formed a clear AB=CD harmonic pattern, which suggests a potential reversal at the completion of the corrective structure. The critical "C" point rests near the 1.141 Fibonacci extension, marking a major support area.
Key technical levels and ratios within the pattern:
XA leg initiated at the peak of $66,418.73 and has retraced to the 0.618 Fibonacci level.
The AB=CD pattern completed at a critical C point around $61,609.86.
The D leg forms a potential resistance around $66,383.08, indicating a strong area for a bullish continuation.
These harmonics highlight the exhaustion of bearish pressure, and the current level provides an ideal scenario for a bullish reversal.
Elliott Wave Interpretation
The Elliott Wave count suggests that the market is in the corrective (iv) wave, which is part of a larger impulsive wave structure. The correction has unfolded into an ABC pattern, with the price holding around the 62% Fibonacci retracement of wave (iii).
Wave (i) completed at $66,418.73.
Wave (ii) retraced back to $61,609.86.
The current wave (iv) is near its final stages, marked by the correction’s ending at $62,149.25, with a potential further minor decline to $61,729.52 to complete the correction.
The structure suggests that a new wave (v) may soon follow, targeting levels near $66,383.08, aligning with the harmonic resistance zone.
Bullish Expectation for the Next 4 Days
Price Rejection from Support Zone: The support zone between $61,729.52 and $62,149.25 is critical. If the price holds above this area, it signals the end of the corrective phase and the initiation of a bullish impulse.
Upside Target: The immediate upside target stands at $66,383.08, which is a confluence of Fibonacci and harmonic resistance levels. This move represents a gain of approximately 6.77% in the next 2-4 days, completing the leg 5 of wave 1 (M).
Potential Elliott Wave Extension: Following the current correction, a new upward impulse within wave (v) may push the price toward the previous swing high at $66,383, indicating a bullish continuation.
Risk Management: The invalidating point lies below $61,609.86. A break below this level would signal the failure of the bullish scenario, potentially leading to further downside, testing levels near $59,863.83.
RSI Analysis and Market Momentum
The Relative Strength Index (RSI) is also displayed at the bottom of the chart, showing a mild divergence. The RSI is starting to recover from oversold conditions, indicating a potential shift in momentum from bearish to bullish. This divergence aligns with the anticipated wave completion and provides additional confidence in the The $BTC CUSD price analysis aligns with an imminent bullish reversal, supported by both harmonic and Elliott Wave patterns. Traders should monitor the support zone between $61,729.52-$62,149.25, as a break below this range would invalidate the bullish outlook. On the upside, a price target of $66,383.08 is projected within the next 4 days.reversal thesis.
