Bitcoin price started rising today to print a high that is a few cents short of $328 on Bitstamp. Since the 17th of November, bitcoin price has been dropping and scoring lower lows each day, on most of the past 10 days. Nevertheless, the downtrend seems to have started fading already, especially with the completed Elliot 5 Wave pattern that we can spot on the 1 hour charts.
5 Elliot Waves On the 1 Hour Charts:
By examining the 1 hour (BTC/USD) charts from Bitstamp (look at the below chart), we can notice the following:
- We can now plot a Fibonnaci retracement between the high printed on the 17th of November ($350.21) and the low scored on the 20th of November ($309.98). Accordingly, bitcoin price is now approaching the resistance at $330.10 which corresponds to the 50% Fib retracement level.
- A 5 Elliot wave pattern can be spotted controlling the market during the past 8 days (The blue zigzag wave on the below chart). The pattern is composed of 3 bearish impulses (1, 3 and 5) and 2 bullish “rollbacks” (2 and 4). The pattern has just been completed a few hours ago, before the price started rising. The downtrend is highly likely to