Fidelity Executive Issues Warning for Bitcoin Correction – Here's How Low BTC Could Drop

Jurrien Timmer, global director of macros at finance giant Fidelity, says he has noticed a pattern that indicates that the price of Bitcoin has not bottomed out yet. Citing Elliot Wave Theory, a technical analysis method that predicts price fluctuations by mapping repetitive wave patterns, the Fidelity executive predicts that in the worst-case scenario, Bitcoin could drop below $23,000 or $30,000. “Looking at the chart pattern since the recent high of $64,870, I can't help but realize that a textbook 5-wave drop could occur… Let's apply that to the Bitcoin chart. So far, wave 1 seems to have dropped from $64,870 to $47,079 for 11,791 points. Wave 2 rallied to $59,588, which is a 70% reversal of wave 1. Wave 3 has a score of 29,571 at $30,017, which is equal to 1.66x wave 1. So far, the recovery from low wave 3 looks like wave 4. Zigzag following 37% of wave 3. In other words, everything so far about this wave pattern seems textbook, suggesting that the 5th wave drop is still ahead. If wave 5 = wave 1, it projects $23,076 as a final low. If only 0.618x wave 1, we can only slightly reduce the current low and low at USD 29,872. So to me this is the range of results for a possible 5th wave sequence. Senior Fidelity executive said he believes the ultimate base of BTC will be above $23,000. “…my guess is that the low will be closer to $23,000 to $30,000 based on the price target below. The distance from head to neckline was $17,000, and the distance measured from the neckline was $30,000. Timmer also adds that his theory may be invalidated if Bitcoin rises by about 10% from current levels. At the time of writing, Bitcoin was trading at $37,300. What would destroy the 5 wave series? A sustained rally above $41,000 should do so, in which case the current retest is 'failed 5th'. as we can see.

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