Bitcoin Hits PRZ – Time for a Correction?

Oct 28

As I expected yesterday, Bitcoin(BTCUSDT) did drop down to the Support zone($114,300-$113,000) at the lower line of the ascending channel and then started rising again today. Both Long and Short positions basically hit their Targets.

At the moment, Bitcoin is moving near a Resistance zone($118,740-$115,740), the Potential Reversal Zone(PRZ)[$117,700-$116,080], and Cumulative Short Liquidation Leverage($118,224-$116,281).

From an Elliott Wave perspective, it seems like Bitcoin is completing the microwave 4 of the microwave C of the main wave Y. There's a noticeable Negative Regular Divergence(RD-) between the last two peaks, which suggests some weakening momentum.

I expect that Bitcoin won't break through the Resistance zone($118,740-$115,740) easily and may fall back at least to the Support zone($114,300-$113,000). If it drops below the 100_SMA(Daily) and 50_SMA(Daily), we could see a deeper decline and possibly the CME Gap($113,495-$110,990) being filled.

Note: Another point to mention is that although the SPX500(SPX) has been hitting new all-time highs as the new week began, BTC has shown a bit less correlation with it in the last day. So if the S&P 500 undergoes a correction, Bitcoin might actually see a sharper pullback, which is something to watch out for as a potential negative factor for Bitcoin.

Note: Also, keep in mind that tomorrow, some important U.S. economic indices will be released, which could also influence the market. So definitely factor that into your considerations.

Note: In general, the crypto market in the past couple of weeks has been heavily influenced by news around U.S.-China tariffs. Any headline can cause Bitcoin and other tokens to swing up or down, so keep an eye on those geopolitical headlines.

Cumulative Long Liquidation Leverage: $106,033-$104,090

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Bitcoin Analysis (BTCUSDT), 2-hour time frame.

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Oct 29

Trade active

Trade was activated in the Potential Reversal Zone(PRZ)[$117,700-$116,080]/or you were able to open a position when BTC broke the lower line of the ascending channel.

Oct 29

Trade closed: target reached

First Target Done

The important US Federal Funds Rate index will be released today.

Oct 29

Note

Full Target Done

Oct 30

Note

CME Gap was filled