Bitcoin Price Dips Below Key Support, Signals Potential Corrective Wave

Bitcoin's weekly chart is at a crucial juncture, with the price hovering near key levels. Traders are debating if this signals a deeper correction or a consolidation phase.

Elliott Wave Analysis

Elliott Waves Academy suggests Bitcoin's bullish phase may have ended, entering a potential corrective phase.
A critical support level from the previous upward wave has been breached, indicating a possible wave reversal.
The break below the diagonal pattern's lower boundary and final price channel implies a shift in market control from buyers to sellers.
Bitcoin is trading below the price channel's lower boundary, now acting as resistance, maintaining bearish sentiment.
There are indications the downward sub-wave might be ending, possibly leading to a short-term upward corrective wave.

Future Outlook

Bitcoin may consolidate at current levels as bulls defend their positions, reflecting market indecision.
If weakness appears near the resistance zone, it could trigger renewed bearish pressure and a deeper correction.
The correction might extend to the 50%-61.8% Fibonacci retracement levels of the previous wave, offering potential support.
Monitoring these levels will be crucial for understanding Bitcoin’s next phase in its long-term wave cycle.