Bitcoin Price Skyrocketing – Completing a 5 Wave Elliott Formation

Bitcoin price continued rising at an unprecedented rate during the past few days, as the market’s bulls managed to push price up from $1413 to $1625 at the time of writing of this article. The current bullish wave is continuing to grow stronger, and even though many think that it is nothing more than an enormous pump attempt and that the bubble will burst sooner or later, I believe that the current rise is catalyzed by multiple uncertainties regarding the future of many of the world’s biggest fiat economies. Simply, the world is just beginning to appreciate the real value of bitcoin, which is pushing price to record new highs every day.

Strong Bullish Wave on the 1 Day BTCUSD Chart:

Let’s examine the 1 day BTCUSD chart from Bitfinex (look at the below chart) and plot the Williams Alligator indicator. We can notice the following:

• The bullish wave is getting stronger and the trading during the past 6 days led to the formation of 6 successive greenish bullish candles, so higher highs have been recorded each and every day during the past 6 days. The candlesticks mostly have relatively long downwards shadows, which reflect how the market’s bulls are preventing drop in price.
• We can note the occurrence of a 5 wave Elliott formation on the 1 day BTCUSD chart, as can be shown by the 3 greenish upwards trend lines and the 2 reddish downwards trend lines on the above chart. Since November 2016, price has been going up along bullish bursts (green trend lines), followed by rather steep downwards price correction attempts (red trend lines). Now, price is rising according to the 5th bullish wave, i.e. the last wave, so a downwards price correction attempt is expected to take price down to the $1400s during the upcoming 1-2 weeks.
• If we examine the smoothed moving averages SMAs of Williams Alligator Indicator, we can find another confirmation of the strength of the current bullish wave.  As we can note on the above chart, the SMAs of the Williams Alligator indicator are exhibiting a bullish signal, or we can say that the alligator’s mouth is “open and ready to eat”, as the green moving average is above the red moving average and both of them are above the blue moving average.

We are currently witnessing the strongest bullish wave ever to affect bitcoin’s market. During the past week or so, a new historical high is recorded every day. Even though analysis of the charts reveals that the market’s bulls have the upper hand and can continue pushing price upwards to higher levels, as per the 5 Elliott wave formation, a downwards price correction attempt is expected during the upcoming week or so.

Chart from Bitfinex, hosted on Tradingview.com

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