07.01.202211:35 Forex Analysis & Reviews: Wave analysis for BTC/USD on January 7, 2021

Breaking news from the world of cryptocurrencies:

The Chainlink token became the most popular cryptocurrency among the largest Ethereum holders at the end of November. The daily altcoin trading volumes among the thousand of the largest Ethereum holders exceeded $ 2 million. Based on this indicator, the token surpassed other popular cryptocurrencies such as Shiba Inu. During the last 24 hours, the three largest token holders on the Ethereum network have conducted 11 transactions to buy Chainlink tokens. In total, large traders bought an altcoin worth $ 14.7 million. Chainlink purchase transactions were recorded by the WhaleStats service, which tracks large movements of cryptocurrency in the Ethereum network.

Now, let's continue to consider Bitcoin from the viewpoint of the Elliott theory on the hourly timeframe.

BTC/USD, H1 timeframe:

The formation of a downward wave can be observed in the last section of the chart for the BTC/USD cryptocurrency pair.

It is assumed that the price started to construct the initial part of the bearish impulse wave [C] after the large corrective wave [B] was completed. Most likely, the first two parts of the supposed impulse, that is, waves 1 and 2, are already done.

Currently, the initial part of the third wave is being formed, which is expected to be more powerful and longer than the first two sub-waves.

It seems that the price has completed its decline in a small sub-wave [1] in the form of a five-wave impulse (1)-(2)-(3)-(4)-(5). Therefore, one can now expect the beginning of an upward correction in the sub-wave [2].

There is a high possibility that wave [2] will be 50% along the Fibonacci lines of the impulse [1], so its end is possible around the level of 44250.00.

So, since there is a probability of price growth in the short term, opening buy deals can be considered in order to take profit at the level of 44250.00.