Bitcoin price seems to merely be grinding upwards, with a dusting of chop in between. What corrections have arrived have been minimal, and are shockingly similar in both time and price.
This fractal behavior could be a sign of an important Elliott Wave signal, that not only says that BTCUSD is about to go parabolic, but that the rally should be “extended” in its price movement.
After a small recovery from the November 2022 bottom in crypto markets, Bitcoin corrected sharply. The correction was short-lived, due to a sudden banking crisis emerging. BTCUSD then made another run higher to above $30,000 per coin, and is once again correcting after a second, roughly 50% upward move.
The two similar sized moves took placed in approximately the same amount of time. Superimposing a fractal of one above or below the other demonstrates just how similar they are in time and price.
This sort of behavior is a fairly common occurence in Elliott Wave Principle called a 1-2/1-2 setup, and it could mean the crypto market is about to explode higher.
The 1-2/1-2 is a phenomenon when a smaller degree wave 1 and 2 take on a similar shape and length of the previous, larger degree wave 1 and 2.
Much like the first 1-2 is a larger degree wave, and the second 1-2 is a smaller degree wave, their appearance suggests an even larger degree wave will be extended. According to a description, a “1-2/1-2 structure is an indication that the larger degree impulse wave in development is extending.”
“The 2nd wave 1-2 structure needs to be similar in proportions to that of the first 1-2 structure, not taking much more, if any more, time than the first. Remember, you are actually seeing the development of a smaller degree impulse wave, so expect it to be a bit smaller than the larger degree structure.”
“An extension suggests a massive elongation of the impulse pattern,” a website further reads.
After a completed wave 2 correction, wave 3 should begin. However, if price stops short of expectations and forms a similar sized pattern as the first waves 1 and 2, it suggests a second set of waves 1 and 2 that help increase the size of the overall wave 3 that was first anticipated.
This type of behavior has been spotted in not only Bitcoin. It is also evident in Chainlink, Litecoin, and the Total Crypto Market Cap chart. Several coins exhibiting the pattern could point to full participation across the market in the next more substantial rally.
It’s as easy as 1-2 1-2…#Bitcoin showings signs of an extended larger degree wave 5.https://t.co/4EDcrVn5iS pic.twitter.com/tpdHJnST3p
— Tony “The Bull” (@tonythebullBTC) May 15, 2023
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