Bitcoin’s weekly chart is at a crucial point, with price action hovering around key structural levels. Traders are now wondering whether the current move marks the start of a deeper correction or just a healthy consolidation before the next move higher.
Elliott Wave signals correspond to the development of correction
Elliott Waves Academy, in his last Analysis of Bitcoin’s expected wave path on the weekly time frame has raised an important question: has the corrective wave begun? The recent market structure indicates that the bullish phase has likely concluded and the price is now moving into a corrective phase. A critical support level from the previous upwave has been broken, indicating a potential wave reversal is underway.
The evidence for this transition becomes stronger when observing the break below the lower bound of the diagonal pattern and the final price channel. Both structures previously acted as strong pillars during Bitcoin’s impulsive climb, and their collapse now suggests that market control is slowly shifting from buyers to sellers.
Currently, Bitcoin is trading below the lower limit of the price channel, which has entered a major resistance zone. As long as the price remains below this zone, bearish sentiment may persist, leaving the market in a cautious state.
Despite the weakness, there are signs that the downward subwave is nearing completion. The structure suggests that an upward correction wave could emerge in the short term as the market tries to stabilize and regain its footing.
Expected prospects
Elliott Waves Academy shared its expectations, noting that Bitcoin could continue to consolidate around its current levels as bulls try to defend their positions. Such a phase of lateral movement often reflects a period of indecision in the market, as both buyers and sellers wait for confirmation before making their next big move.
However, the Academy warned that if signs of weakness emerged near the current resistance zone, the market could face a potential reversal. This shift could trigger renewed bearish pressure, pushing Bitcoin into a deeper corrective leg.
According to the analysis, the correction could extend to the 50%–61.8% Fibonacci retracement levels of the previous upwave. These Fibonacci zones often serve as key support areas during corrective moves, and a drop to these boundaries could provide a more stable base for a future bullish reversal.
Ultimately, monitoring price behavior around these crucial levels will be essential in the coming days. Whether the market holds its ground in the consolidation or slides into a deeper retracement, the coming moves in these zones could set the tone for the next phase of Bitcoin’s long-term wave cycle.