Bitcoin continued its descent today, falling to a low of $55,820 in CME futures, a few dollars lower at $55,660 in the spot market (Bitstamp). This marks a return of futures leading the cash market that was absent or reversed for the last month. Interestingly enough, pricing on cash exchanges was above pricing in CME futures ever since breaking above $40,000.

BTC futures had been trading down around $55,000 after coming off the record high of $61,000 on Monday. Until Chairman Jerome Powell gave his statement followed with a round of Q and A solidified that the accommodative policy was here to stay. His reaffirmance of the Fed’s dovish stance took the U.S. dollar significantly lower and most other assets higher.

After hitting a new record high in the cash market of $61,440 on Saturday, March 13^th, we have come off of that high by roughly 8%. As of 4:30 PM EST, spot Bitcoin is trading at roughly $56,500 and $56,600 in the CME’s March futures contract.

An ABC flat correction differs from a zigzag in that the waveform traces out a 3-3-5 waveform. In general ABC flat corrections retrace less than zigzags.
The more powerful the underlying trend, the shorter the flat correction tends to be.

Simple Flat

Although none of the many companies in the U.S. have filed applications for their own Bitcoin ETF have gained approval as of today, abroad, many such electronically traded funds have begun this week.

Recently we see the likelihood that BTC has already hit its target for our B wave increase. Today we have seen a small recovery in BTC, which currently, as of 4 PM EST, is trading at approximately $49,500, up over 2% for the day.

In this article, I am not attempting to go into the differences between the world’s top two cryptocurrencies or make a case for either being more widely used or better than the other. I am simply going to map out the differences and similarities in recent market action, along with short-term projections, and try to decide which one is better for you as an investor.

Bitcoin futures (BTC) today saw their first decent gains since the fall from all-time highs precisely one week ago. The increase of $2,550 or 5.5% took BTC’s most active contract of March (BTC H21, soon shifting into April BTC J21) up to approximately $48,800.

Bitcoin took a lose yesterday with futures (BTC #F) closing down approximately 3% ($1,630) at $53,900. BTC hit a high yesterday of $57,790, which was just above where we predicted an end to the current impulse wave, so we cannot safely assume we have entered a corrective A, B, C period.

Like we wrote about last week BTC is currently in a wave 5 scenario today with the help of our charts are going to make the case of where this final impulse wave will conclude.

“One way to forecast a fifth wave target with Elliott Wave is from the .618% extension area of the first & third waves combined measured against the high in the fourth wave.