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<\/p>\nToday we’re going to look at the king of cryptocurrencies – bitcoin.<\/p>\n
And we’re going to do so through the lens of the most powerful trick I have in my toolbox.<\/p>\n
I’m talking about the Elliott Wave Principle (EWP).<\/p>\n
The EWP tells us that markets trend and reverse in predictable patterns.<\/p>\n
The trending phase of the market has 5 “waves.” Waves 1, 3, and 5, push the market in the direction of the larger trend.<\/p>\n
Waves 2 and 4, on the other hand, see the market pull back against the direction of the larger trend.<\/p>\n
Once we have a completed 5-wave cycle, we’ll see a counter-trend pullback in 3 waves. This pattern repeats itself over and over and over again.<\/p>\n
We use numbers (1, 2, 3, 4, 5) to label the trending waves. And we use letters (A, B, C) to label the countertrend components once a 5-wave cycle is complete.<\/p>\n
In the case of bitcoin, the last time we completed a full 5-wave cycle was between December 2018 to November 2021.<\/p>\n
Following that 5-wave cycle, we then had a 3-wave pullback that lasted from November 2021 to November 2022.<\/p>\n
You can see this cycle, with the labels attached, on the chart below.<\/p>\n
As you can see, we have a clear 5-wave advance followed by a textbook 3-wave pullback. Once the 3-wave pullback is over, we should expect yet another 5-wave advance.<\/p>\n
That’s the nature of the Elliott Wave cycle. If you can learn to recognize these waves, it puts you at an incredible advantage relative to other traders and analysts.<\/p>\n
Next, let’s look at where bitcoin is currently situated within its next Elliott Wave cycle. You can check that out on the chart below.<\/p>\n
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This chart picks up right where the last one left off. The previous 3-wave pullback ended in November 2022. That’s when the current 5-wave cycle to the upside kicked off.<\/p>\n
The current 5-wave cycle is still underway. As you can see from the labels, we still have one more wave higher to go before a more significant 3-wave pullback begins.<\/p>\n
This should be overall great news for folks who have either bought bitcoin or are thinking about buying some.<\/p>\n
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