- Bitcoin (BTC) has been in a stalling trading range since its late-August bounce, with a string of lower highs and lower lows signalling a continuation of the bear market. But the bullish structure that has kept BTC in a bullish channel since December is intact, signalling that a major bottom is close at hand.
- The world’s largest cryptocurrency has held above key support levels, including the 50-day moving average and the 200-day moving average. These levels, which have acted as support during previous market cycles, have repeatedly been tested but not yet broken, which is a sign of a bull market that is far from over.
- With the crypto markets having entered a bear market once again, many investors have begun to question whether or not the bullish Bitcoin (BTC) structure that dominated the market over the past few months is still intact. As it turns out, the answer to this question is a resounding yes, as the current Bitcoin price action has failed to invalidate the bullish continuation scenario that served as the catalyst for the preceding rally.
- This being said, the current Bitcoin price action has stalled at the top of the range that was formed during the last bullish rally, causing many investors to become worried that a large pullback is coming.
Wave count analysis
- There are two main potential wave counts at play, each with slightly different implications for the direction of the market. The first wave count is a continuation of the bullish Bitcoin (BTC) structure that has been building since mid-November.
- The second wave count is an inverse head and shoulders pattern. The two count scenarios are intertwined and are likely to remain so until the market decisively breaks out of the range defined by the neckline and the head.
In the wake of the most recent market sell-off, many investors are wondering whether the current Bitcoin (BTC) rally has stalled. The short answer is no. In fact, the long-term Bitcoin (BTC) structure remains intact. Despite the recent market volatility, the best-laid plans of investors who are bullish on Bitcoin (BTC) remain intact.