Bitcoin Attacks Multiple Support Levels; Bottoming Phase Begins.
05/21/21 INSIIDE Track Update – “Bitcoin fulfilled almost all of the downside expectations it triggered when it reached its major upside target at ~65,000/BT and signaled that a ‘5th’ wave peak was unfolding. That was projected to trigger a sharp plunge back toward ~29,000/BT – the 4th wave of lesser degree support (and the 2021 intra-year low and support).
It reinforced that with a primary range-trading target at ~30,000 (~66,000 peak – ~48,000 low – ~30,000 range target) and monthly HLS for May ’21 (~32,000/BT). Last week, it generated a pair of bearish daily signals and – on May 12 – projected a sharp 1 – 2 week drop that was expected to take it below 30,000/BTM in the near future (see Weekly Re-Lays for additional analysis).
Yesterday, Bitcoin spiked down to 30,275/BTM – fulfilling almost all of what was expected from this sell-off and also reaching its weekly HLS (extreme downside target for this week) in the process. That should usher in some volatile consolidation with a ceiling around 48,000/BT”
Bitcoin has, for all intents and purposes, fulfilled ongoing analysis for a plunge below 30,000/BT after it previously fulfilled early-2021 projections for a surge to ~65,000/BT, where a higher-magnitude ‘III’ (3) wave was expected to peak and complete the parabolic phase of Bitcoin’s advance. (A corresponding ‘V’ wave peak could later retest or spike above that ‘III’ wave top.)
That was forecast to trigger a drop back to ~29,000/BT – its 4th wave of lesser degree support and what is now considered the most decisive level of 6 – 12 month and 1 – 2 year support. If it can hold that downside target in the coming months, Bitcoin would likely set a 3 – 6 month bottom near there.
What could 2021/2022 outlook for Dollar & Gold mean for the future of cryptos?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.