Bitcoin Correction Phase is Likely Over, Will BTC Price Hit $50K in Feb-2024

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Crypto analyst Crypto Ed took to his YouTube channel and discussed the recent Bitcoin price trend. As of January 30th, he said changes have been observed in the cryptocurrency market. A green box in the analyst’s chart indicated a potential move to $35,000. However, recent price action has invalidated this prediction.

Previously, Crypto Ed suggested that as long as Bitcoin remains below $40,000, a move to $35,000 in an ABC pattern was anticipated. However, the latest market movements have contradicted this outlook. The analyst now believes that the move to $35,000 is no longer valid.

There was a consideration that a correction might have been completed with a bottom at $38,500, marked as a truncated sea leg. Confirmation of this came with a break above $43,600. Crypto Ed said that the bottom is likely around $38,500, and further upside movement can be expected.

Initially expecting a downward move, Crypto Ed was surprised by a higher market trend. However, a change in perspective led to the belief that a completed Elliott wave cycle may be at hand. The analyst clarified that what was previously assumed to be wave five is more likely part of a larger correction, considering the small size of the correction relative to Elliott wave principles.

Analyzing the Elliott wave chart on the 1-hour timeframe, Crypto Ed pointed out that the correction after the third wave was too small. A bigger correction is deemed necessary before anticipating higher levels. The current expectation is that the market is in the first leg of a corrective phase, to take out lows around $41,000 before a potential upward move to $52,000 or $51,700.

Additionally, the analyst noted a bearish divergence on the 1-hour chart, supporting the idea of an imminent correction. The appearance of this divergence, coupled with signals from technical indicators on the 4-hour chart, suggests that a reversal is likely within the next 24 to 48 hours.