close icon

Bitcoin Is Up 35% Since Christmas. Here is Why

The price of Bitcoin was hovering around $7200 on Christmas, down from $13 880 six months earlier. And while the majority of headlines were all doom and gloom, the cryptocurrency‘s price charts were telling a very different story.

Bitcoin was down 48% from its recent top, but that wasn’t the time to join the bears. The analysis below, sent to subscribers on December 25th, revealed that the few bulls’ optimism was actually warranted this time.

Bitcoin bulls getting ready to shine

Bitcoin’s 4-hour chart showed that the decline between $13 880 and $6425 was a simple a)-b)-c) zigzag. The correction included a triangle in wave b) and an ending diagonal in wave c). BTCUSD was in an uptrend prior to this decline, so it made sense to expect that uptrend to resume once the pullback was over.

In addition, the Elliott Wave analysis allowed us to identify $6425 as the invalidation level for this count. A stop-loss order there would limit the risk of loss while keeping the profit potential open. A month and a half later now, the updated chart below shows how the situation developed.

Bitcoin up 35% since Christmas following an Elliott Wave correction

Bitcoin is currently trading near $9770, up 35% since Christmas. More importantly, $6425 was never threatened. And while the price is going to stay volatile and react to every single piece of news, traders should remember to look at the charts, too. Quite often, the information they hold can put you months ahead of the next major move.

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Bitcoin Can Never Be a Global Currency. Here’s Why

Bitcoin’s relentless rise in the past year forced even some its most vocal critics to throw in the towel. Kevin O’Leary, for example, used to call Bitcoin “garbage”, but recently said that he has 3% of his portfolio in BTC and ETH. And indeed, many, us included, have been calling Bitcoin a bubble for years,…

Read More »

Bitcoin: When Prediction is Hard, You Can Still Prepare

Bitcoin bulls are in retreat, at last. After the cryptocurrency’s meteoric surge to $42 000 at the start of 2021, the price dipped below $29 000 earlier today. And since BTC is one of the most-widely followed assets these days, experts were quick to offer their views. J.P. Morgan analysts stated that $40k is a…

Read More »

Ahead of Bitcoin ‘s $3k+ Fourth Wave Correction

Thursday was a disappointing day for Bitcoin bulls. The largest cryptocurrency by market cap fell by over $2000 to an intraday low of $16 218 yesterday. Given Wednesday’s high of $19 490, BTCUSD lost over $3200 per coin in just two days. Instead of the new all-time high many expected, traders had to swallow a…

Read More »

Ahead of Bitcoin ‘s 2017-Style Surge with Elliott Wave

Bitcoin is surging again. The cryptocurrency is approaching $16k in a rally reminiscent of the late-2017. Near-zero interest rates make speculative instruments such as Bitcoin very appealing. The BTC-as-an-inflation-hedge narrative is also helping the bulls right now with the Fed and ECB pumping cash into the financial system. But Bitcoin is far from a true…

Read More »

Ethereum ‘s Collapse Carries an Elliott Wave Message

Ethereum, still the second largest cryptocurrency with a market cap of ~$39B, was enjoying a strong 2020. ETHUSD was up 282% YTD until the start of September. The last few days, however, seem to have brought the bulls’ winning streak to its end. The price of Ethereum collapsed from as high as $489 to less…

Read More »

Bitcoin ‘s 40% Surge didn’t Come Out of Nowhere

On Thursday, we showed you how Elliott Wave analysis set the stage for a Bitcoin plunge to under $7700 ten days before Mark Zuckerberg’s Libra testimony. The cryptocurrency was barely holding above $7400 at the time of writing and many thought it was prone to decline even further. Since Bitcoin is among our premium instruments,…

Read More »

BTCUSD: Libra Testimony Didn’t Cause the Fall

Facebook’s Mark Zuckerberg testified before Congress on October 23rd about the company’s Libra cryptocurrency project. The hearing didn’t go as smooth as the crypto community hoped, which reflected on the price of digital assets such as Bitcoin. At one point on Wednesday, BTCUSD was down by over $750 for the day. But was Zuckerberg’s Libra…

Read More »

More analyses