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The wave counting on the 4-hour chart of bitcoin is absolutely understandable on a higher scale and very difficult to analyze on a lower scale. Internal wave sets look very ambiguous and hardly fall under the definition of "classical wave counting". However, I want to remind readers that the main thing is to understand the big picture and be able to work out the current wave counting and make money on it. Also, for bitcoin (especially for bitcoin!), The news background is very important, which we will talk about later in this article. Now let's get back to the wave counting. After, presumably, 5 global upward waves were built, a completely logical corrective structure began, which, according to the classics, consists of three a-b-c waves. And all three waves are already well traced on the chart. Thus, one might even assume that the construction of the correctional set of waves has been completed, and bitcoin will now "resurrect". However, looking at the previous global waves and their internal structures, I would not be surprised at all if the trend section starting after April 14 takes on a much more complex form. At the moment, I can say that bitcoin quotes have dipped to the low of the assumed global wave 4. An unsuccessful attempt to break this low will indicate the willingness of the cryptocurrency to move up slightly and build an upward wave.
Bitcoin collapsed today in the truest sense of the word. While analysts and economists were calculating to what values bitcoin could fall, the cryptocurrency fell in a few hours by several thousand dollars and lost about $13,500 of the coin's value today. Thus, we can conclude that all forecasts for the decline in bitcoin have already come true. Now it is important to understand what will happen next with the cryptocurrency. Let me remind you that the two previous upward sections of the trend in 2013 and 2017 also ended, if not with a landslide fall, then with a long decline, which sometimes amounted to 90%. Thus, I will not be surprised at all if this time it will be the same. The news background for digital gold has been very bad lately. Negative news from Tesla, the eternal comments of Elon Musk, who will soon be sued by Tesla investors, news from China, where financial institutions were prohibited from providing any cryptocurrency services, as well as the next problems with electricity in one of the regions of China, I believe only pushed bitcoin downward. The news is really important, but I cannot say that it was because of them that the collapse occurred. They were the kick-start that sparked a massive sell-off in cryptocurrency as the market smelled fried. Everyone remembers that earlier, after periods of strong growth, bitcoin always showed equally strong periods of decline. Therefore, many investors today rushed to get rid of their coins outright.
Based on the analysis, I believe that the three-wave downward wave structure can be completed, but at the same time, the collapse of the bitcoin exchange rate can continue as long as investors do not complete their sell-offs. Thus, now I recommend not to rush with new deals, it is better to wait until the situation calms down, and it will be possible to understand how strong wave c will turn out to be.
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