Bitcoin (BTC/USD) is showing two lower highs and higher lows. This indicates a bearish correction within the strong uptrend.
A contracting triangle chart pattern seems to have the best papers at the moment. Let’s review the path of least resistance (for more info on this, check out my pattern and MA method).
The BTC/USD is expected to stay in a corrective mode for a little longer. But once the correction is completed – either deep towards the Fibonacci retracement levels or shallow via an ABCDE contracting triangle – then the uptrend should resume and aim at the $50,000 target.
The BTC/USD is now building an ABC correction (pink) – ABC flat (sideways) or ABC zigzag (deep correction). This can expand into an ABCDE triangle chart pattern as well:
On the 1 hour chart, we can see how the correction is unfolding.
An ABC correction (grey) completed wave B (pink) at the 78.6% Fibonacci retracement level. Now another ABC (grey) is taking place within wave C (pink).
The main criteria will be the breakout above the resistance (orange) or below the support (green) trend lines.