Elliott Wave Pattern Signals Bitcoin’s Next Major Rally Is Imminent
Bitcoin's technical setup screams bullish as Elliott Wave theory points toward explosive upside momentum.
The Wave Count Breakdown
Classic five-wave patterns suggest we're approaching the final corrective phase before the next major leg up. Traders watching the 4-hour charts see textbook wave structures playing out—exactly what technical analysts look for before big moves.
Timing the Breakout
Wave completion typically precedes 30-50% rallies in Bitcoin's history. The current consolidation matches previous pre-bullish patterns where sideways action gave way to vertical climbs. Market sentiment aligns perfectly with the technical picture.
Why This Matters Now
With institutional adoption accelerating and traditional finance still trying to wrap its head around basic blockchain concepts, technical indicators often provide clearer signals than fundamental analysis. The Elliott Wave pattern cuts through the noise of conflicting news headlines and regulatory uncertainty.
Remember—charts don't lie, but Wall Street analysts certainly try. Bitcoin's next surge might just make traditional portfolio managers wish they'd paid attention to something other than their Bloomberg terminals.
Figure 1. Bitcoin’s short-term Elliott Wave count with several technical indicators and moving averages
Like the gray W-ii, second waves tend to retrace between 50-76% of the prior 1st wave rally, which in this case targets $112,564-$109,807. bitcoin has now reached that zone.
Thus, the orange W-2 has become protracted (yesterday’s bounce, today’s 2nd leg lower), but a break above the orange W-1 high ($117,981) will be a serious warning for the bears, with confirmation of gray W-iii above the gray W-i high ($123,220). We will then look for 159-161K before we see a more significant (green W-4) pullback.
*Warning levels for the Bulls: first, blue, at $112,043 (25% chance no W-1, 2 setup); second, grey, at $111,118 (50% chance); third, orange, at $109,345 (75% chance); and fourth, red, at $107,271 (100% chance no W-1, 2).
