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. Today the A wave took us down yet another 10%, and BTC futures are currently trading at $48,140 on the CME.
Some headlines came out that may have aided this current price decline. Both of which were comments made by high-ranking financial figures. The first of which came from Elon Musk, who tweeted over the weekend, “BTC & ETH do seem high lol.” This statement’s bearish undertones were reverberated by a warning that came from Janet Yellen on Monday in which she stated, “I don’t think that Bitcoin … is widely used as a transaction mechanism,” she said, according to CNBC. “To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”
The selling-off that I believe we are witnessing flowed over into the Ethereum market as well. The Ethereum Liquid Index ($ELX) is trading down another 9.7% percent, adding to the huge drawdown Ethereum experienced yesterday. Between these last two days, ETH lost nearly $500, equating to more than a 20% decline this week. Ethereum is currently pegged at around $1,500.
This week so far has seen major sell-offs in the first and second-largest cryptocurrencies. Bitcoin, which had surpassed a $1 trillion dollar market cap on Monday, now has a market cap of only $895 million.
So, where could this corrective A, B, C take us to? I believe the A wave could take us as low as $39k - $35k. Although it has already retraced over 38% of Wave five so technically speaking, it could conclude anywhere from $44,000 to $35,000. I see BTC reaching $35k in this A, B, C pattern, so it may be that we see a slight consolidation of our B wave before entering the final C wave. We can more accurately predict this corrective stage’s conclusion after we have our B wave conclude, Which I expect to see sometime this week.
Be prepared to buy Bitcoin at $35,000 as that is the likely conclusion point and best entry price. I expect we will more than likely hit in the next week and a half.