Bitcoin’s weekly chart is at a pivot point, with price action hovering around key structural levels. Traders are now wondering whether the current move represents the beginning of a deeper correction or just a healthy consolidation before the next bullish wave.
Elliott wave signals are in line with the development of the correction
Elliott Waves Academy, in Latest The analysis tracking Bitcoin’s expected wave path on the weekly time frame raised a key question: Has the corrective wave begun? The recent market structure indicates that the upward wave has likely completed, and the price may now move into a corrective phase. A crucial support level of the previous bullish wave has been broken, indicating a possible wave reversal.
Evidence of this shift is reinforced when observing the breakout below the lower limit of the diagonal pattern and the final price channel. Both of these structures served as strong supports during Bitcoin’s explosive rise, and their collapse now indicates that control of the market is slowly shifting from buyers to sellers.
Currently, Bitcoin is trading below the lower limit of the price channel, which has flipped into a major resistance area. As long as the price remains below this zone, bearish sentiment may persist, keeping the market in a cautious state.
Despite the weakness, there are signs that the downward sub-wave may be about to end. The structure indicates that a short-term bullish corrective wave may appear as the market attempts to stabilize and regain its position.
Expected expectations
Sharing his forecast, Elliott Waves Academy noted that Bitcoin may continue to consolidate around its current levels as the bulls try to defend their positions. This phase of sideways movement often reflects a period of indecision in the market, as both buyers and sellers wait for confirmation before committing to their next major move.
However, the academy warned that if signs of weakness start to appear near the current resistance area, the market could face a potential reversal. This shift could lead to renewed downward pressure, pushing Bitcoin into a deeper corrective wave.
According to the analysis, the correction may extend towards the 50% – 61.8% Fibonacci retracement levels of the previous bullish wave. These Fibonacci areas often act as key support areas during corrective movements, and a decline in these bands can provide a more stable basis for a future bullish reversal.
Ultimately, it will be necessary to monitor price behavior around these crucial levels in the following days. Whether the market is flat in the process of consolidating or sliding into a deeper correction, the upcoming movements in these areas could set the tone for the next phase of Bitcoin’s long-term wave cycle.
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