Short term Elliott Wave View on Bitcoin (BTCUSD) shows the rally to 12336.88 on August 6, 2019 ended wave ((X)). The crypto currency declines from there and the structure is unfolding as an impulse Elliott Wave structure. Down from 12336.88, wave 1 ended at 11532, wave 2 ended at 12145.42 and wave 3 ended at 9653.6. We can see from the chart below the internal of wave 3 is also unfolding as a 5 waves impulse of lesser degree. Wave ((i)) of 3 ended at 12061.1 and wave ((ii)) of 3 ended at 10026.74. Next leg lower to 10250 ended wave ((iv)) of 3 and wave ((v)) of 3 ended at 9653.6
Expect Bitcoin to rally in wave 4 then extends lower 1 more leg to end wave 5 and complete cycle from August 6 high. Afterwards, the the crypto currency should do larger bounce to correct the 5 waves down from August 6 high. A break below July 17, 2019 low (9049.54) is needed to validate the view of a larger correction in Bitcoin. We expect bounce to fail in 3, 7, or 11 swing for further downside as far as pivot at 12336.88 stays intact.
Bitcoin 1 Hour Elliott Wave Chart
