Bitcoin, the largest cryptocurrency by market cap, is currently trading at $23,417 with a 24-hour trading volume of $31.78B and a market dominance of 41.43%. Although the BTC price has increased by 0.65% in the last 24 hours, it is still struggling to break its August 2022 high.
Technical Analysis Points to Downward Movement
According to technical analysis, Bitcoin is currently being pushed down by its 200 and 50 Moving Averages (MA) and must break above them with strong volume; otherwise, it could sink significantly downward. The chart screenshot clearly shows the struggles Bitcoin is facing to break its August 2022 high.
Elliott Wave Analysis Suggests Deeper Correction
From an Elliott Wave perspective, it appears that Bitcoin has completed its first bullish impulse wave, which is a positive sign for the future. However, currently, the correction is in progress, and wave 2 corrections in crypto are usually deeper, especially in crypto. A classic retracement of 0.618 FIB or even lower is expected, and given the significant unfilled GAP, it’s likely to happen. The 0.618 FIB retracement is at 18,658 (LOG), and the start of the gap + Point of Control (POC) of the previous consolidation structure is at 16,830, and these two levels are crucial.
Filling the Gap
There is a large unfilled GAP between approximately 16,830 and 20,407, and these gaps tend to be filled sooner or later. The probability of filling this gap now is high, and it’s better to fill the gap sooner rather than later to avoid an ugly dump next year. The bulls did not react to the significant supports on lower timeframes, indicating a sign of weakness.
March is projected to be a very bearish month, and Bitcoin tends to pump significantly at the beginning of April. A backtest can validate this claim. April is a generally positive month.
The cryptocurrency market moves in waves, and the crypto environment is different from the stock market, forex, indices, commodities, and gold. Thus, it’s essential to concentrate on a single market type to avoid confusion. While the current correction is underway, the filling of the gap is likely to happen, and taking advantage of the reversal zone can yield positive results. April is projected to be a positive month for Bitcoin.
