Elliott wave count prediction for the conclusion of the rally in bitcoin
Elon musk gave more than a tweet to boost Bitcoin price with the announcement yesterday that Tesla would invest $1.5 billion into Bitcoin and may soon begin accepting Bitcoin as a payment method. This news from Tesla’s CEO is undoubtedly the most significant headline that the world’s largest cryptocurrency has had for some time. With all the media hype around this announcement it is no surprise that I am eating my words of my last article since BTC has definitely made a new all-time high at these historic levels, closing yesterday at $44,590 for a gain of 17.3%.
This adoption from big, well-established companies is likely to increase throughout 2021, and headlines such as these will certainly cause an increase in investment from the general public.
Toady Bitcoin continued to rally, closing in the gap to $50k. Currently, BTC futures are trading up about 6% for the day at approximately $47,500. If we put in our current Elliot wave count, which puts us currently in a 5th wave, we can determine where this current wave should terminate. By inserting a Fibonacci extension that compares wave 3 to wave 5 and following the rule that the third wave cannot be the shortest, we see that we are already at a 78% relationship and at most can have a one-to-one relationship with wave three.
This means that the two most likely scenarios would be that we have already ended our wave five and should see a retracement from this point, or that we continue higher to approximately $54,000 over the next week to week and ½ before hitting a new top in the market.