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: 21/10/2021 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

Irregular View

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 now broken to new highs, making this an 'irregular' correction. A C wave lower is still needed to complete this corrective phase and this could get as low as the channel lows near 25k. However, this near-term bearish view is only valid if and when the 64k break-out fails and we see a bearish pattern heading lower again.

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.