BTCUS

BTCUSD – 2-Hour Chart Analysis (Oct 9, 2024): Anticipating a Bullish Reversal

Overview of Current Market Structure

The chart presents a harmonic pattern and Elliott Wave theory integration, showcasing key technical indicators for Bitcoin's price action over the next few days. Based on the structure, Bitcoin (BTCUSD) is currently trading at $62,175.77 and appears to be completing a corrective wave pattern within a larger bullish outlook. Several harmonic patterns and Fibonacci retracement levels provide additional clues about the next possible moves.

Harmonic Pattern and Key Levels
The price action has formed a clear AB=CD harmonic pattern, which suggests a potential reversal at the completion of the corrective structure. The critical "C" point rests near the 1.141 Fibonacci extension, marking a major support area.

Key technical levels and ratios within the pattern:

XA leg initiated at the peak of $66,418.73 and has retraced to the 0.618 Fibonacci level.
The AB=CD pattern completed at a critical C point around $61,609.86.
The D leg forms a potential resistance around $66,383.08, indicating a strong area for a bullish continuation.
These harmonics highlight the exhaustion of bearish pressure, and the current level provides an ideal scenario for a bullish reversal.

Elliott Wave Interpretation
The Elliott Wave count suggests that the market is in the corrective (iv) wave, which is part of a larger impulsive wave structure. The correction has unfolded into an ABC pattern, with the price holding around the 62% Fibonacci retracement of wave (iii).

Wave (i) completed at $66,418.73.
Wave (ii) retraced back to $61,609.86.
The current wave (iv) is near its final stages, marked by the correction’s ending at $62,149.25, with a potential further minor decline to $61,729.52 to complete the correction.
The structure suggests that a new wave (v) may soon follow, targeting levels near $66,383.08, aligning with the harmonic resistance zone.

Bullish Expectation for the Next 4 Days
Price Rejection from Support Zone: The support zone between $61,729.52 and $62,149.25 is critical. If the price holds above this area, it signals the end of the corrective phase and the initiation of a bullish impulse.

Upside Target: The immediate upside target stands at $66,383.08, which is a confluence of Fibonacci and harmonic resistance levels. This move represents a gain of approximately 6.77% in the next 2-4 days, completing the leg 5 of wave 1 (M).

Potential Elliott Wave Extension: Following the current correction, a new upward impulse within wave (v) may push the price toward the previous swing high at $66,383, indicating a bullish continuation.

Risk Management: The invalidating point lies below $61,609.86. A break below this level would signal the failure of the bullish scenario, potentially leading to further downside, testing levels near $59,863.83.

RSI Analysis and Market Momentum
The Relative Strength Index (RSI) is also displayed at the bottom of the chart, showing a mild divergence. The RSI is starting to recover from oversold conditions, indicating a potential shift in momentum from bearish to bullish. This divergence aligns with the anticipated wave completion and provides additional confidence in the
The BTCUSD price analysis aligns with an imminent bullish reversal, supported by both harmonic and Elliott Wave patterns. Traders should monitor the support zone between $61,729.52-$62,149.25, as a break below this range would invalidate the bullish outlook. On the upside, a price target of $66,383.08 is projected within the next 4 days.reversal thesis.