Is BTC forming a Bearish Flat?

Jan 26, 2023

In my previous ideas, I examined the possibility of the daily BTC chart forming a double zigzag, WXY, of which an X-wave may be about to complete. This hypothesis has yet to be invalidated.

X-waves often become what Elliott called flat corrections- so let's check the characteristics of a flat correction. As the name implies, a flat corrective wave has ABC waves of similar heights. However, the mutual ratio of "similar" can be 123.6%, 138.2%, or 161.8%, which is hardly even. Still, the movement is more horizontal in the big picture compared to the trending markets.

We might've already got B, extending in the 123.6-138.2% range of A, and C, which should be substantially at the "similar" height of A.

C could extend to around 138.2%, which is approximately 27. 5k. But, in any case, this height would be near the intersection of the Gann Square Arcs in my chart. This range would, of course, also include the previous high of roughly 25200.

Each time a high in the past is overcome, the range of time and price of an uptrend in Dow Theory widens, and we become more optimistic.

However, the possibility of a double zigzag in Elliott wave theory still hasn't been completely ruled out. In this case, a typical shape of an X wave, a flat (expanded), could be formed at the potential junction of a downward wave at the higher level. Plus, we've already got a bearish anti-Gartley harmonic pattern, which could induce immediate reversal.