Many Bitcoin fans like to say, that we – chartists – do not understand the crypto-currency and its behavior. There are Bitcoin lovers, still blinded by the past performance of the virtual currency, neglecting the change in trend. Ignorance is the cause why many investors took a hit, when Bitcoin topped in December 2013. Today we are presenting a second overview of the future price movement in Bitcoin.
The crypto-currency topped at the remarkable level of 1151.49. In December 2013 the currency reached its termination point. Since then it has lost over 70 percent of its value and still moves in a corrective fashion, validating the ongoing bear market. The price movement from the top, which has ended in April, is counted as a double zig-zag “(W)-(X)-(Y)”.
The countertrend rally form April to June is labeled ((X)) due to its three-wave structure. Afterwards the market dragged prices down to the 270 level, tracing out the first wave of the next decline for wave “((Y))”.
In conclusion, the Elliott Wave Principle is based on mass psychology and, in our opinion, it is the best method for understanding the markets. Our long-term forecast states that prices will continue to move lower, all the way to the price territory of wave “((4))”, dropping below the 100 level. There could be short-term, counter-trend movements, but for now the trend remains to the downside.