So after all the FUD that went on in January bulls will return to the market in the following months. Crashes like these happen only a few times a year, similar to what happened last year (China FUD). These are good times to buy and have confidence that in the big scheme of things prices will rise, as half of trillion dollars market cap for cryptos is like having some spare change in the pocket. Forex market daily trading volume is 7 trillion. How much do you reckon trading volume for digital currencies will be in the future, considering the accessibility of the market and the global scale it can reach? That's why 49225$ for one BTC by the begging of May sounds optimal to me, and here is my Technical Analysis from which I am drawing that conclusion.
This correction has tested the 150 Day EMA which provided a strong support both now and in the past
Looking at some trendlines it is clear that previous resistance was broken and it was now retested as support.
Elliot Waves count shows the end of ABCDE correction that formed a falling wedge. Wedges are known as a multiple price wave reversal pattern. When the pattern completes, and the price breaks out of the wedge, it is usually in the opposite direction the wedge was pointed. This is why it is called a reversal pattern. For example, if a wedge is angled downward —called a "falling wedge"—the price will often break above the top of the pattern and rally.
Notices the bull trap? Did you fall for it? I lowered my B wave below the closing point of the candles because on the higher timeframe you would just see the wick.
And now onto the price projection.
Combining trendlines, Fibo levels and Elliot Waves count we can project the future price action, which brings us to the target price of approximately 49225$ in the first week of May. As the Elliot Waves theory suggests markets are fractal in nature, so 12345 count from the third picture is the sub wave of the wave 1, and ABCDE correction is the wave 2, which leads me to believe that wave 3 is coming anytime now and that this was just a calm before the storm.
If you agree or disagree with my Technical Analisis I would like to hear your reasons why, so make sure to leave a comment below, as I always like to stress test my forecasts.
If this was helpful and encouraging make sure to upvote so that others can benefit from it as well.
Cheers, and happy trading :)