Bitcoin to < $1000? The bearish bias
There are two mindsets when Bitcoin and the cryptocurrency market as a whole decide to take a dump. The first is fear. The second is joy. Really, you can only have one of these as a predominant emotion as a response to price action. Value traders/investors always look at prices as good no matter what. If my outlook for the cryptocurrencies is beyond 2 trillion for the year, then any decrease is a boon and a gift.
The Bearish Bat
The Bearish Bat is one of the many Gartley Harmonic animal patterns identified by Scott Carney. The principles of this pattern are:
- Move AB should be the .382 or .500 retracement of move XA.
- Move BC can be either .382 or .886 retracement of move AB.
- If the retracement of move BC is .382 of move AB, then CD should be a 1.618 extension of move BC. If the move of BC is .886 of move AB, then CD should be a 2.618 extension of move BC.
- CD should be .886 retracement of move XA.
ABC Elliot Wave, Corrective, Bearish
There is a bias for a downtrend using Elliot Wave Analysis. We could be observing the continuation of a long-term 2nd leg, a major corrective wave. This corrective wave is called an ABC wave. Notice the position of the final leg of the letter C. It’s pointed towards the 657.70 price area. That is a very, very pessimistic view and certainly not in the current forecasts. However, the technical analysis does not lie and shows a probability of this scenario playing out.