BTC shows signs of Downward trend with truncated wave5Bitcoins price uptrend from its recent lows appears to be out of gas. This can be shown using the elliot wave theory on the recent impulse wave where BTC price has produced a truncated wave 5
A truncated fifth wave signals exhaustion in the prevailing trend and warns of an imminent reversal. This pattern demonstrates that buyers (in an uptrend) or sellers (in a downtrend) lack conviction to push prices to new extremes. Truncations precede significant corrections or reversals.
The strength of Wave B (reaching higher than the truncated Wave 5) suggests significant countertrend momentum. This often occurs in flat corrections.
Typically, C waves extend to specific Fibonacci levels:
100% of A wave - This would target approximately $78,500
1.618 of A wave - (common C wave extension) - This would target around $76,000-$77,000
2.618 × A wave - (extended C wave) - This could reach as low as $73,000-$74,000
This seems to coincide with what I've been saying these past 3 months that the 74k level needs to be reached and the liquidity that price wants to take advantage of will need to be confronted before BTC will be able to reach this market cycles ATH.
