Bitcoin Elliott Wave analysis for 25/01/2019

Bitcoin Elliott Wave analysis for 25/01/2019:

Wave two of the corrective decline might have been finished

Market technical overview:

The BTC/USD pair has just completed the five wave decline in the last leg of correction, labeled as the wave C. The overall corrective pattern in the wave 2/B is now a simple Zig-Zag pattern, so the market is ready for an impulsive rally higher. Moreover, the market has completed the corrective wave 2 of the lesser degree at the level of $3,550 and now is trying to break through the short-term trend line (marked in orange). The next target level for the bulls is seen at 38% of the whole swing down at the level of $3,672. The other target is seen at 50% Fibonacci retracement at the level of $3,756.

Recommendations:

The corrective wave 2 might be completed and the market might be ready to rally higher, so the buy orders should be in play as long as the level of $3,402 is not clearly violated (due to wave 1 and wave 2 overlap). The targets are seen at the level of $3,672 and $3,756, but the market might break through these levels as the impulsive wave to the upside will unfold.

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