Bitcoin is the original and by far the largest cryptocurrency. Since its introduction in 2009 it has grown exponentially and spawned many competing cryptocurrencies. Opinion is mixed as to its true worth, but speculation and huge interest has created a volatile - and potentially very rewarding - trading environment.

Updated: 24/08/2021 1130GMT 0630EST

NEXT 10 DAYS

INDEX 10D

V=4 C = 4              Conditions: trend
F=2  I=1 T=3  S=4   Strategy: look for short

Refined Target

Bitcoin is in a large wave 4 correction which has already completed its first leg (wave A) lower to 28.5k. This makes the current bounce a wave B that has played out as expected with a move above 50k to get traders bullish again. A refined target comes in at 53606 where we should see a reversal down into another large decline.  The logical place for the end of wave C and the entire correction is the 20k re-test.

EVIDENCE

NDX comparison
10D E1

NEXT 3 MONTHS

INDEX 3M

V=4 C =2               Conditions: SLOWER  UPTREND
F=2  I=2 T=4  S=5  Strategy: LONG

The eventual path depends on how cryptos develop - if Bitcoin becomes an alternate to gold and a store of value for a new generation, and can hold 1135 got new highs to form a trend sequence above 20k, then the outlook is very bullish. This will have huge implications in the longer term as we could then expect at least another multi-year, proportional rally to the first 5 wave sequence after a long period of consolidation.