Bitcoin experienced a sharp drop from $107,000 to $92,000, providing traders with opportunities in a highly volatile market. Crypto analyst Patel used Elliott Wave analysis to accurately predict this movement.
Elliott Wave Theory Indicates Further Correction
According to Crypto Patel, Bitcoin is currently in the middle of a corrective phase labeled as Wave IV under Elliott Wave theory. The analysis identified $108,277.94 as the peak of Wave III, marking the starting point of the price decline. Traders are now focused on Fibonacci retracement levels, which outline critical support zones: the 0.5 level at $85,063.49, the 0.618 level at $80,354.68, and the 0.786 level at $74,096.80. These levels suggest that Bitcoin may experience further downside before stabilizing. Immediate support near $90,048.24 provides a temporary cushion against deeper losses, while $108,277.94 remains a significant resistance point.
Short-Selling Opportunities at the $102K to $104K Range
The $102,000 to $104,000 price range has been highlighted as a critical zone for short-selling opportunities. Patel advises traders to wait for Bitcoin to approach this range before opening short positions to capitalize on potential downward movement. A disciplined trading approach is necessary in this scenario, as the bearish trend continues to dominate the market. To manage risk effectively, traders are encouraged to place stop-loss orders just above the resistance zone visible on the 4-hour chart.
Key Price Levels and Market Sentiment
Bitcoin’s Fibonacci retracement levels provide traders with essential tools for navigating its current market structure. Support levels at $85,063.49 and $80,354.68 are critical for determining whether the price stabilizes or declines further. If these levels fail, the $74,096.80 level becomes the next focus for traders watching for further bearish movement. The question now is whether Bitcoin will stabilize after this correction or if it is headed toward a more prolonged bearish phase.
Traders will need to stay vigilant and adapt their strategies as new price levels emerge in the days ahead.
