Did Bitcoin top out at ₹1,08,367? Critical levels to watch
1. Current pattern unfolding
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Five-wave rally: The impulsive rally starting from ₹52,568 appears to have topped out at ₹1,08,367.
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V-shape reversal: Bitcoin retraced sharply to ₹92,209 on 20th Dec 2024.
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Sideways movement: Over the past 6-7 days, Bitcoin has been in a consolidation phase between ₹92,209 (lows) and ₹99,872 (highs), forming a Flat Correction (ABC Wave).
Daily chart - Bitcoin
Key observations
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Wave-C: Appears to be an impulsive sequence internally, ending with a Rising Wedge near ₹99,872.
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Critical support: ₹92,209 – the low from 20th Dec 2024.
30 mins chart - Impulsive wave C of flat correction
2. Catching the tops with wave patterns ( 30 mins chart)
- The rising wedge or ending diagonal at ₹99,872 highs is one of the most rewarding patterns in Elliott Wave analysis.
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Understanding and applying this pattern effectively allows you to catch tops and prepare for reversals.
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Key takeaway: If you're on the right side of the pattern—as I was recently—you can reap significant rewards from such setups.
3. Possible strategies
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If Bitcoin breaks below ₹92,209, it could confirm a larger corrective phase.
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Key downside targets:
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₹83,625: Equality projection of the fall from ₹1,08,367 to ₹92,209.
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₹73,555: 162% extension projection of the same move.
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Strategy:
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Wait for confirmation below ₹92,209 before entering short positions.
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Use ₹92,209 as the invalidation level for bullish positions.
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Bitcoin may continue its consolidation, eventually breaking higher.
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Strategy:
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Monitor for a breakout above ₹99,872 to confirm a resumption of the uptrend.
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Target higher levels for Wave-2 correction, with stops below ₹92,209.
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4. Outlook for next week (by 3rd Jan 2025)
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The sideways movement is expected to resolve, providing clear directional cues.
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Bearish bias: Favored if ₹92,209 breaks decisively.
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Bullish potential: A strong hold above ₹92,209 with a breakout above ₹99,872 could invalidate the bearish outlook & has to be reviewed again later.
